DBS Bank is in talks to acquire a stake in Alliance Bank

DBS Bank is in talks to acquire a stake in Alliance Bank Malaysia, but they revised their offer from 49% to a more regulatory-friendly 30% stake after the initial proposal faced hurdles with Bank Negara Malaysia (BNM).

This move aims to secure approval for a significant entry into Malaysia’s banking sector, giving them a foothold to potentially expand, though the process involves complex regulatory and shareholder approvals. 

Key Developments: DBS Bank and Alliance Bank

• Initial 49% Bid: DBS initially sought to buy up to 49%, but Bank Negara Malaysia typically caps foreign ownership at 30%, requiring a waiver for higher stakes, which wasn’t granted.
• Revised 30% Proposal (Nov 2025): DBS withdrew the 49% application and resubmitted for up to 30%, aligning with standard foreign ownership rules and increasing chances of approval.
• Strategic Importance: Acquiring Alliance Bank provides DBS with broader access to the Malaysian market, competing with other Singaporean banks like OCBC and UOB.
• Largest Shareholder: The deal involves negotiations with Vertical Theme Sdn Bhd, a major shareholder in Alliance Bank backed by Singapore’s Temasek Holdings (which also holds a stake in DBS).

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