Breaking News: Taiwanese Bank Ends $82M Acquisition Deal with American Bank

Taichung Commercial Bank cancels $82M acquisition deal with American Continental Bank due to changing global conditions. Compensation of $500,000 will be paid. Both parties unable to fulfill outlined terms.

Taichung Commercial Bank, based in Taipei, Taiwan, has decided to abandon its plans to acquire American Continental Bank in California. This comes just over a year after the announcement of the $82.1 million deal. In a filing with the Taiwan Stock Exchange Corp., Taichung Commercial stated that both parties agreed to cancel the deal due to the rapidly changing global political and economic conditions. To compensate for the terminated agreement, Taichung Commercial will pay American Continental $500,000. It was revealed that the companies were unable to fulfill all the terms and conditions outlined in the agreement by the termination date.

Breaking News: Taiwanese Bank Ends $82M Acquisition Deal with American Bank | ogusyis

The deal, which was expected to be finalized in the first quarter of 2023, aimed to expand the Taiwanese bank's presence in Los Angeles, Washington, and Texas, with plans to establish new branches nationwide. Nevertheless, Taichung Commercial expressed its commitment to exploring other opportunities to expand in the overseas market. As reported by Taipei Times, the bank had already established its first overseas branch in Labuan, Malaysia, in 2018, and subsequently opened marketing offices in Kuala Lumpur, Penang, and Kota Kinabalu. The President of Taichung Commercial, David Jia, previously emphasized the alignment between the two banks' business models, residential mortgage loan production platforms, and their focus on the Chinese-American market.

As of June 2022, Taichung Commercial had total assets of approximately $26 billion, while American Continental Bank, headquartered in the City of Industry, California, reported total assets of about $357.4 million as of June 30. The full-service commercial bank primarily serves the Chinese-American communities in Los Angeles, Orange, Riverside, and San Bernardino counties in California, as well as Bellevue, Washington. Additionally, it operates three loan offices across Washington, California, and Texas.

This is not the first cancelled merger of the year, as TD and First Horizon terminated their proposed $13.4 billion merger in May, citing "uncertainty" regarding regulatory approval.

In conclusion, Taichung Commercial Bank has withdrawn its intention to acquire American Continental Bank due to the rapidly changing global political and economic landscape. While the deal would have expanded Taichung Commercial's reach in the United States, both parties mutually agreed to part ways. Taichung Commercial now aims to explore alternative avenues for expanding in the international market.