KUALA LUMPUR/SINGAPORE: Australia and New Zealand Banking Group Ltd’s (ANZ) talks to sell its 24% stake in Malaysian lender AMMB Holdings (AmBank) Bhd to retirement fund KWAP have been called off, people familiar with the matter said today.

The collapse follows a joint announcement from AmBank and domestic peer RHB Bank Bhd late yesterday to drop merger talks after failing to reach mutually acceptable terms.

ANZ has been seeking to sell its AmBank stake since early last year as it divests of minority stakes in Asia, and after the Malaysian bank featured in investigations into alleged corruption at state investment fund 1MDB.

At the current market value, ANZ’s AmBank stake is worth US$790 million.

The people, who declined to be identified as they were not authorised to speak with media, said the sale to KWAP depended on a merger between AmBank and RHB.

ANZ and KWAP declined to comment.