The Globe and Mail reports in its Thursday edition that Bank of Nova Scotia has abandoned a deal to sell its Malaysian unit to a Taiwanese financial-services firm. The Globe's James Bradshaw writes that under an agreement struck last May, Scotiabank intended to sell its entire stake in the Bank of Nova Scotia Berhad for $255-million (U.S.). The prospective buyers were subsidiaries of Taiwanese firm Cathay Financial Holdings Ltd. The deal was subject to due diligence as well as approvals from authorities in Taiwan and Malaysia. However, Scotiabank and Cathay Financial have agreed to scrap the sale, adding uncertainty to the Canadian bank's future in Malaysia, where it has operated since 1973. In a statement to The Globe, Scotiabank confirmed that the deal "did not close before a preagreed deadline." A spokesman added that the bank "can't go into details" but that the decision was not based on factors relating to the operation of the Malaysian business. In a filing with the Taiwan Stock Exchange, Cathay Financial also said the deal could not be closed in time, and "all parties agree" to terminate it. The proposed deal with Cathay Financial was not financially material to Scotiabank.