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Bank Pembangunan Malaysia, Danajamin Nasional to begin merger talks

Bank Pembangunan Malaysia Bhd. and Danajamin Nasional Bhd. secured Bank Negara Malaysia's approval to initiate talks of a merger, Bernama reported Dec. 23.

The move came after the Malaysian government proposed a plan to restructure and strengthen the development financial institutions in the country.

Should the merger complete, the next stage will be merging Export-Import Bank of Malaysia Bhd. and Small Medium Enterprise Development Bank Malaysia Bhd. into the combined entity, the report added, citing a statement from Bank Pembangunan.

A steering committee led by the finance ministry will oversee implementation of the government's plan. Bank Pembangunan and Danajamin Nasional are expected to complete negotiations within the next six months, Bernama reported.