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According to Market Intelligence, April 2023

CIMB gets Malaysian central bank's nod for Jupiter Securities deal

CIMB Group Holdings Bhd. obtained approval from Bank Negara Malaysia for its acquisition of Jupiter Securities Sdn. Bhd. and its sale of the cash equities business and CIMB Futures Sdn. Bhd. to the securities company.

The Malaysian company said Aug. 10 that it will now enter into relevant agreements with China Galaxy Securities Co. Ltd. to formalize the proposed partnership. Jupiter Securities will be the platform for the proposed partnership's operations in Malaysia.

The companies will also incorporate a new joint venture that will be the holding company of Jupiter Securities. CIMB and China Galaxy each will have a 50% stake in the joint venture through their respective wholly-owned subsidiaries CIMB Group Sdn. Bhd. and China Galaxy International Financial Holdings Ltd.

CIMB Group's Malaysia cash equities business comprises institutional and retail brokerage, share margin financing for broking clients, equity financing services and equities research, as well as exchange listed derivative broking under CIMB Futures.

The companies obtained the Malaysian Securities Commission's approval for the transaction in April.

The central bank's approval relates to the second of the two-part joint venture partnership with China Galaxy. The first part relating to the sale of a 50% stake in CIMB Securities International Pte. Ltd. to China Galaxy was closed in January.