TAIPEI (Reuters) – Taiwan’s financial regulator rejected on Monday a takeover attempt by financial conglomerate CTBC of rival Shin Kong saying its plans were incomplete.
CTBC made an unexpected bid for Shin Kong last month, upending a proposal for Shin Kong to merge with another peer, Taishin. Shin Kong has said it views Taishin as its preferred bidder.
Taiwan’s financial services industry is domestically focused and fragmented, and Taishin and Shin Kong hope that by merging they can expand their footprint and become a more globally competitive company.
Financial Supervisory Commission Vice Chair Chiu Shu-chen told reporters that CTBC’s plans were incomplete, and that it had asked the firm to provide further documentation for its bid, but not all met the regulator’s requirements.
However, the regulator still encourages the financial industry to make “benign” mergers and acquisitions that respect market order, she added.
CTBC said in a statement that it was disappointed, but respected the decision.
Taishin said last week it would raise its offer for Shin Kong by 25% to about T$222.4 billion ($6.98 billion) in a deal that would be Taiwan’s biggest-ever financial services industry merger.
($1 = 31.8680 Taiwan dollars)
(Reporting by Faith Hung and Emily Chan; Writing by Ben Blanchard; Editing by Emelia Sithole-Matarise)
