DBS Mulls Second Attempt at Indonesian Bank M&A
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Considerations are being made at DBS on whether or not to submit a bid for Indonesian lender Bank Permata – its second attempt to enter the Southeast Asian market through an acquisition.
DBS has not yet concluded its decision on whether or not to bid for the bank valued at $2.4 billion, according to a report citing anonymous sources. The submission deadline is believed to be due in about a month.
Should it decide to pursue the acquisition, DBS will face competition from OCBC and Sumitomo Mitsui Financial Group. Bank Permata’s current major shareholders include Standard Chartered (45 percent) and PT Astra International (45 percent).
Should DBS proceed, it will mark the second attempt at acquiring a major Indonesian bank. In 2013, DBS failed to acquire PT Bank Danamon Indonesia with its $6.5 billion bid following a change to foreign ownership rules. The Indonesian lender was subsequently acquired by Mitsubishi UFJ earlier this year.
Questions & Answers
Q.What happened during DBS's previous attempt to acquire an Indonesian bank?
What happened during DBS's previous attempt to acquire an Indonesian bank?
In 2013, DBS failed to acquire PT Bank Danamon Indonesia with a $6.5 billion bid. This was due to a change in foreign ownership rules in Indonesia at the time.
Q.Who might DBS be competing against if it decides to bid for Bank Permata?
Who might DBS be competing against if it decides to bid for Bank Permata?
If DBS chooses to pursue the acquisition, it is expected to face competition from other financial groups. These include OCBC and Sumitomo Mitsui Financial Group.
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