CTBC Financial Holding Co (中信金控) yesterday said it had clinched a NT$6.1 billion (US$189 million) deal to fully acquire Royal Bank of Scotland Group PLC’s (RBS) Malaysian unit, accelerating its expansion into other Asian markets.
The deal came just two weeks after CTBC announced on March 29 it was buying a 35.6 percent stake in Thailand-based LH Financial Group PLC for NT$15.4 billion.
The government has been pushing local lenders to make overseas acquisitions amid fierce competition at home. Cathay Financial Holding Co (國泰金控) in January acquired a 20 percent stake in the Philippines’ Rizal Commercial Banking Corp and a 40 percent stake in Indonesia’s PT Bank Mayapada International through its life insurance unit, Cathay Life Insurance Co (國泰人壽), while Fubon Financial Holding Co (富邦金控) purchased a 48 percent stake in South Korea’s Hyundai Life Insurance Co in December last year.
The latest investment by CTBC makes the company the first local financial services provider to expand to Malaysia, the company said.
“This will be another breakthrough made by the company in expanding to Asia,” CTBC Financial senior vice president Rachael Kao (高麗雪) told a media briefing at the Taiwan Stock Exchange yesterday.
Upon the completion of the transaction, “CTBC will be the first local financial services provider to secure a license in Malaysia,” Kao said.
CTBC’s offer to purchase the British lender’s assets is to be conducted by its subsidiaries CTBC Bank (中信銀行) and Taiwan Life Insurance Co (台灣人壽保險), which will hold 51 percent and 49 percent stakes in Malaysia business respectively.
Acquiring the Malaysian unit allows “CTBC Bank to obtain a full banking license to provide extensive financial services for customers in Malaysia, where the government strictly controls foreign financial services providers,” Kao said.
In order to accelerate its expansion to other Asian markets to boost its business, the bank has been aggressively seeking to upgrade its representative office in Kuala Lumpur to a banking unit since its inception in November last year, Kao said.
In addition to the Malaysia unit, CTBC also owns two subsidiaries of RBS in Kuala Lumpur and Penang, where Taiwanese companies have built industry clusters, she said.
CTBC Bank’s board yesterday also agreed to invest NT$3.99 billion in an offshore banking unit operated by RBS’ Malaysia unit, representing a 93.5 percent discount based on its US$132.5 million of assets.
Commenting on speculation that CTBC intends to take over the controversial Taipei Dome build-operate-transfer project from Farglory Group (遠雄集團), Kao said the board did not discuss the matter during yesterday’s meeting.
PRESSURE FROM THE US: Huawei said a decision by the US was ‘arbitrary and pernicious, and threatens to undermine the entire [technology] industry worldwide’ Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has stopped new orders from Huawei Technologies Co (華為) in response to Washington’s move aimed at further limiting chip supplies to the Chinese company, the Nikkei reported yesterday, citing multiple sources. The orders that TSMC took before the new ban and those that were already in production are not affected, and could continue to proceed if those chips could be shipped before the middle of September, the report said. TSMC, the world’s biggest contract chipmaker and a key Huawei supplier, on Thursday last week announced plans to build a US-based plant and on Friday added that
MediaTek Inc (聯發科), which designs chips used in mobile phones, yesterday launched its new 5G Dimensity 820 system-on-chip (SoC), targeting mid-range to high-end smartphones. The company expects the penetration of 5G technology to gain pace quickly this year and not be affected too much by the COVID-19 pandemic. MediaTek said it aims to expand its 5G chip portfolio this year to cover phones of varying prices after it shipped its first 5G SoC, the Dimensity 1000, last quarter. The Dimensity 820, made by Taiwan Semiconductor Manufacturing Co (台積電) on 7-nanometer technology, is designed for mid-range to high-end 5G phones. MediaTek expects to infiltrate the
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
US-CHINA TENSIONS: The company said that it supplies self-designed chips to the Chinese company and, as such, is not affected by the latest US export restrictions Macronix International Co (旺宏電子) said it does not expect its shipments of memory chips to Huawei Technologies Co (華為) to be affected by the latest US export restrictions on the Chinese tech giant. “As long as the company [Huawei] places orders, we will ship [chips], unless the [Taiwanese] government restricts all Taiwanese companies from shipping” to Huawei, Macronix chairman and chief executive officer Miin Wu (吳敏求) said on Monday in Hsinchu. The US Department of Commerce on Friday took a further step to block chip supplies from non-US companies to Huawei by requiring foreign semiconductor makers to get US government permission before