CTBC Financial said that it will purchase a 100 percent stake in the Royal Bank of Scotland Berhad, a subsidiary of RBS for about NT$6.1 billion (US$188 million), marking the first acquisition by a Taiwanese financial institution attempting to obtain a license to operate a banking subsidiary in Malaysia. According to international business wire reports, the disposal of RBS's assets in Malaysia to CTBC Financial is part of the British banking group's plan to retreat from overseas markets. The acquisition will be completed through CTBC Financial's two subsidiaries, the banking flagship CTBC Bank and its insurance arm Taiwan Life Insurance, the financial holding company said. After the acquisition, CTBC Bank will hold a 51 percent stake in the Malaysian bank, and Taiwan Life will own the remaining 49 percent, CTBC Financial said. In addition, CTBC Bank will spend a further NT$3.98 billion to acquire RBS's offshore banking unit in Labuan, Malaysia. The acquisition is expected to help CTBC Bank secure a full banking service license in Malaysia and own banking outlets located in Kuala Lumpur and Penang, CTBC Financial said. In 2015, RBS decided to withdraw from the Asian market, prompting CTBC Financial to begin exploring the possibility of acquiring RBS's assets in Malaysia in August of that year. In October, CTBC Financial conducted due diligence to probe the Malaysian bank's financial condition before reaching the acquisition deal. CTBC Bank set up a representative office in Kuala Lumpur in November 2015 and since has intensified its efforts to extend its reach in Malaysia. CTBC Financial said that Malaysia is the seventh largest trading partner of Taiwan and more than 2,000 Taiwanese high tech firms have set up their footholds there so the market is worth exploring. According to CTBC Financial, the company aims to expand in overseas markets through acquisitions and mergers and it is possible for the company to acquire more foreign assets in the Southeast Asian market in the future after closing the deal to acquire RBS's assets in Malaysia.
CTBC Financial Holding is to buy the assets of Royal Bank of Scotland (RBS) Berhad, a subsidiary of RBS in Malaysia, for around TWD 6.1bn ($188m), marking the first time a Taiwanese bank has tried to obtain a license to operate a financial subsidiary in Malaysia. CTBC Bank is to also spend TWD 3.98bn ($123m) to acquire RBS's offshore banking unit in Labuan, Malaysia. This move by RBS is part of its ongoing plan to retreat from the overseas market.