Thailand's TMB Bank PCL and Thanachart Bank PCL are likely to conclude talks for a potential merger by the end of January 2019, the Bangkok Post reported, citing Prapas Kong-Ied, director general of the country's State Enterprise Policy Office.
A banking source confirmed that both banks are in the early stages of merger talks. If the deal pushes through, Thailand's finance ministry could inject fresh funds into TMB Bank to maintain its shareholding. The finance ministry owns a 25.9% stake in the bank, while ING Groep NV holds a 25% stake.
TMB Bank would need to raise more capital to facilitate a merger with Thanachart Bank, according to the report. In such a scenario, ING would own between 20% and 25% of the bank, while Thanachart Bank and the finance ministry would own 20% and less-than-20% stakes, respectively.