Hong Leong merger with EON bank
In the competition market, the consumerism efficiency pressures unstoppable increase and new regulatory guidelines will force banks to have different strategies to win and stay in the market. Hong Leong Bank realize that if want become a larger firm in country and prevent sifted out by other competitor, so Hong Leong Bank need have a strong financial strength and high standards, otherwise bank also need larger scale. Therefore, Hong Leong bank are seeking an opportunities to grow and serve their customer better and the opportunity to merger with EON Bank Group is for enlarge their firm to boost up their domestic market position. The merger with EON Bank will bring Hong Leong Bank become Malaysia 4th largest bank compare to previous from 6th position; the merger bring Hong Leong Bank get 1.6 times increase in both assets and deposits, with an assets size become more than RM140 billion and a total deposit size of more than RM110 billion. In the competition market all firm are always trying to enlarger firm, no matter in capital or share they are trying to push up and get profit maximization. This is the only way stay strong in a market. The Hong Leong Bank merger with EON Bank had get widens distribution network in Malaysia which reach with 329 branches across the nation and more than 1400 self-service terminals, it bring Hong Leong Bank have strong network foundation on their business. Hong Leong group extension on network will allow them to reach out to their communities and to all customer segments and also bring convenience to consumer to get Hong Leong Bank service. Then extension on network may help firm raise in profit due to getting larger customer get in Hong Leong service. On 2011, the merger news came out had bring Hong Leong Bank share price rise to 13.74 higher price on 8 July 2011 and benefit to shareholder. The purpose of two company merger is because trying to get profit maximization, increase shareholder wealth....
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