Malaysian lender RHB Bank has decided to end negotiations with Tokio Marine Asia (TMA) to sell up to 94.7% of its shares in RHB Insurance.

A statement by RHB Bank was quoted by Reuters as saying: “RHB Bank wishes to announce that after much negotiations and deliberations, both the company and TMA have not been able to reach an agreement on mutually acceptable terms and conditions for the proposed disposal.”

“Accordingly, RHB Bank and TMA have mutually agreed to cease negotiations, and will not proceed with the proposed disposal.”

In July this year, RHB Bank first obtained permissuon from the Malaysian central bank to start negotiations with TMA – a unit of Japan’s Tokio Marine – to offlaod the stake.

RHB Insurance is a non-core asset for RHB Bank. The bank intended to use the proceeds from sale to boost its commercial banking business. The lender has been trying to offload its insurance operations since 2015-2016.

In 2016, Tokio Marine expressed interest to acquire RHB Insurance for aproximately $500m.

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As of last year, RHB Insurance had total assets of $426.86m and liabilities of $288.4m. Capturing a market share of 4.4%, RHB Insurance is the 10th biggers insurer in Malaysia.