Malaysian Industrial Development Finance Bhd. has obtained Bank Negara Malaysia's approval to proceed with talks on a proposed merger with Al Rajhi Banking & Investment Corp.'s local arm, Al Rajhi Banking & Investment Corp. (Malaysia) Bhd., DealStreetAsia reported Jan. 10, citing an announcement from the Malaysian bank.
The company has three months from the date of the central bank's approval to finalize negotiations. The merger discussions will involve the Malaysian lender, sole shareholder Permodalan Nasional Bhd. and Al Rajhi Bank.
If the merger talks push through, the deal would be subject to regulatory approvals in Malaysia and Saudi Arabia.