MANILA – Shares of Rizal Commercial Banking Corp and China Banking Corp rose on Monday, following a report that a merger of the two lenders was being negotiated.

The Philippine Star, citing “multiple industry sources,” said China Bank, owned by tycoon Henry Sy, initiated merger talks with RCBC.

RCBC shares were up 4.11 percent in early trading to P58.20. China Bank shares were up 3.39 percent to P36.55.

In a statement to the stock exchange, China Bank said it was "not aware of any negotiations with RCBC."

A merger between China Bank and RCBC would form the country’s fifth largest bank, according to the Star report.

Sy also controls BDO Unibank, the country’s largest lender.