Taiwan tells Mega Financial to weigh merger with Chang Hwa Bank

PUBLISHED : Monday, 25 November, 2013, 2:57pm
UPDATED : Monday, 25 November, 2013, 2:57pm

Taiwan’s finance ministry has asked state-run Mega Financial to evaluate the possibility of merging with rival Chang Hwa Bank in what could be the biggest merger in the banking sector in more than a decade, local newspapers reported on Monday.

Mega’s top executives have received instructions from the ministry, which is in charge of state-run financial institutions, to study the potential merger, the Economic Daily and the Commercial Times reported.

A successful merger would have a combined net value of more than NT$100 billion (HK$26.2 billion), the papers said.

Taiwan’s banking sector has struggled with steep price cuts and among Asia’s lowest returns on assets, partly because the sector is fragmented.