Taichung Commercial Bank Co (台中商銀) on Saturday said that it has terminated an agreement to acquire US-based American Continental Bancorp (ACB), citing fast-changing market conditions.
In a filing with Taiwan Stock Exchange Corp, the bank said the two sides reached a consensus not to pursue the deal after taking into account rapidly changing global political and economic conditions.
The two sides also failed to fulfill the terms of the agreement by the deadline, Taichung Bank said.
Photo: Chang Hsieh-sheng, Taipei Times
The Taichung-based bank and ACB signed an agreement in October last year for the Taiwanese bank to acquire a 100 percent stake in ACB in exchange for cash.
The acquisition would have allowed Taichung Bank to boost its visibility in the North American market.
ACB is the holding company of the California-headquartered American Continental Bank, which offers corporate banking services to Chinese-American communities in Los Angeles, Orange, Riverside and San Bernardino counties in California, and in the city of Bellevue in the state of Washington.
In October, ACB said the acquisition price had been tentatively set at US$82.1 million, or about US$41.48 per share, calculated as of June 30 last year.
Taichung Bank said it had agreed to pay US$500,000 to ACB to terminate the acquisition agreement.
The decision to not pursue the agreement was unlikely to have any adverse material impact on its operations, Taichung Bank said.
Despite the failed acquisition, Taichung Bank said it would continue to evaluate any opportunities to extend its reach in overseas markets.
In 2018, Taichung Bank opened a branch in Labuan, Malaysia — its first overseas foothold — and later added marketing offices in Kuala Lumpur, Penang and Kota Kinabalu.
Last May, it obtained approval from the Financial Supervisory Commission to open a representative office in Ho Chi Minh City, Vietnam.
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