Taipei, Oct. 14 (CNA) Taichung Commercial Bank Co. said on Saturday that it has terminated an agreement to acquire U.S.-based American Continental Bancorp (ACB), citing fast changing market conditions.
In a filing with the Taiwan Stock Exchange (TWSE) where Taichung Bank shares are traded, the bank said the two sides reached a consensus not to pursue the deal after taking into account rapidly changing global political and economic conditions.
In addition, the two sides failed to fulfill the terms of the agreement by a deadline, Taichung Bank said.
The Taichung-based bank and ACB signed an agreement in October 2022 for the Taiwanese bank to acquire a 100 percent stake in ACB for cash.
The acquisition would have allowed Taichung Bank to boost its visibility overseas in the North American market.
ACB is the holding company of California-headquartered American Continental Bank, which offers corporate banking services to Chinese-American communities in Los Angeles, Orange, Riverside, and San Bernardino counties in California, and in Bellevue in the state of Washington.
In October, ACB said the acquisition price had been tentatively set at US$82.1 million, or about US$41.48 per share calculated as of June 30, 2022.
Taichung Bank said it had agreed to pay US$500,000 to ACB to terminate the acquisition agreement.
The decision not to pursue the agreement was not likely to impose any material adversary impact on its operations, Taichung Bank said.
Despite the failed acquisition, Taichung Bank said it will continue to evaluate any opportunities to extend its reach in overseas markets.
In 2018, Taichung Bank opened a branch in Labuan, Malaysia, its first overseas foothold, and it later added marketing offices in Kuala Lumpur, Penang and Kota Kinabalu.
In May 2022, Taichung Bank obtained approval from the Financial Supervisory Commission, Taiwan’s top financial regulator, to open a representative office in Ho Chi Minh City.
