oth CB Group and SB will make a joint application soon to Bank Negara Malaysia for approval of the mergers pursuant to Take over Code 2010. The proposed merger and acquisition is also subject to approvals from the Securities Commission, the Minister of Finance, and shareholders of CB and SB. At a joint CB and SB media briefing today to announce the proposed merger and acquisition, CB Group Chief Executive Dato Syed Sofiane Al Jeffry said, The entire transaction is a landmark merger exercise and value-enhancing for all shareholders, customers and employees of CB and SB. For the CB Group, this proposed merger and acquisition is strategic and consistent with our priority agenda of transforming our consumer banking franchise. It augurs well for the future as it gives us the lead in the long-anticipated next round of banking consolidation.

The deal is expected to increase the earnings and ROE for CB at least in the medium term. The complementary strengths of CB and SB will translate as a quantum leap in value creation capabilities particularly in retail, corporate loan and credit card operations, consumer finance, and wealth management. It also represents an endorsement of our business model, industry leadership, and financial strength. This achievement would not have been made possible without the hard work of the Board, management, and people of Suria Bank.

1. Identify which post integration model that CB adapted after the complete mergers. Justify your answer.
2. What could be the likely cost of integration in terms of value that CB need to bear, to ensure integration proceed smoothly.