Asia

Malaysian merger

Bank Negara, Malaysia's financial services regulator, has given permission for the local subsidiaries of the UK's Aviva Insurance and Japan's Mitsui Sumitomo Insurance to start merger talks. Mitsui Sumitomo announced last year that it had reached an informal agreement with Aviva to buy the group's general insurance operations in the region for US$450mn. The merger will result in the second largest non-life insurance company in Malaysia in terms of combined premium income. Mitsui Sumitomo currently holds a 47% majority stake in Mitsui Sumitomo Insurance (Malaysia) Bhd. The next biggest shareholder is the locally based Amanah Capital Partners Bhd which holds a 23% stake in the company. After the merger, Mitsui Sumitomo will hold a 51% stake in the new company.