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 company is DBS considering acquiring?
What company is DBS considering acquiring?
DBS is considering submitting a bid for Bank Permata, an Indonesian lender. This would be their second attempt to enter the Southeast Asian market through an acquisition, following a failed bid in 2013.
Q.Who else might bid for Bank Permata?
Who else might bid for Bank Permata?
Should DBS decide to pursue the acquisition, it will face competition from other financial groups. OCBC and Sumitomo Mitsui Financial Group are identified as potential competitors in the bidding process.
Q.What was DBS's previous attempt to acquire an Indonesian bank?
What was DBS's previous attempt to acquire an Indonesian bank?
In 2013, DBS made a $6.5 billion bid to acquire PT Bank Danamon Indonesia. However, this attempt failed due to a change in foreign ownership rules in Indonesia at that time.
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