It’s final: no deal for CIMB and San Miguel

Malaysia’s CIMB Group no longer interested in owning Bank of Commerce.

BOC is the banking unit of San Miguel Corporation, the Philippines' largest business group. CIMB Group Holdings Berhad, Malaysia's second largest bank by assets, said the parties failed to reach a deal despite discussions being extended when the agreement lapsed.

“As such, the parties will not proceed with the proposed acquisition,” CIMB said.

San Miguel president and COO Ramon Ang earlier said his company finalized a deal with CIMB on June 10. It signed a memorandum of agreement in 2012 to sell 58% of BOC to CIMB for some US$274 million.

Issues related to BOC's real estate assets delayed the deal's closure. Foreigners are not allowed to own land in the Philippines. The deal would have allowed CIMB entry to the Philippine banking industry and San Miguel could have raised money for its expansion.

BOC is the Philippines' 16th largest bank in terms of assets. It operates 122 branches and 300 automated teller machines across the country.