Largest SE Asia banking deal reviewed
The largest banking deal in Southeast Asia ever, Singapore’s DBS bank’s planned acquisition of a major stake of Indonesia’s Bank Danamon, is in limbo, local news reported.
DBS, which originally said it wanted to buy 76.4 per cent in Bank Danamon from Singapore’s state investment firm Temasek Holdings, got approval by the Indonesia central bank on June 12 to buy just a 40-per cent stake.
“At 40 per cent, the economics will be challenging as it will not allow us to integrate with our existing business in Indonesia,” DBS Chairman Peter Seah was quoted as saying by Reuters, adding that DBS will now review the entire transaction.
Without a controlling stake, DBS would have difficulty integrating Bank Danamon into its existing business in Indonesia, Seah said.
The original deal has been tagged at $7.2 billion by DBS in April 2012, a volume that now hangs in the balance.
The largest banking deal in Southeast Asia ever, Singapore's DBS bank's planned acquisition of a major stake of Indonesia's Bank Danamon, is in limbo, local news reported. DBS, which originally said it wanted to buy 76.4 per cent in Bank Danamon from Singapore's state investment firm Temasek Holdings, got approval by the Indonesia central bank on June 12 to buy just a 40-per cent stake. "At 40 per cent, the economics will be challenging as it will not allow us to integrate with our existing business in Indonesia," DBS Chairman Peter Seah was quoted as saying by Reuters, adding that...
The largest banking deal in Southeast Asia ever, Singapore’s DBS bank’s planned acquisition of a major stake of Indonesia’s Bank Danamon, is in limbo, local news reported.
DBS, which originally said it wanted to buy 76.4 per cent in Bank Danamon from Singapore’s state investment firm Temasek Holdings, got approval by the Indonesia central bank on June 12 to buy just a 40-per cent stake.
“At 40 per cent, the economics will be challenging as it will not allow us to integrate with our existing business in Indonesia,” DBS Chairman Peter Seah was quoted as saying by Reuters, adding that DBS will now review the entire transaction.
Without a controlling stake, DBS would have difficulty integrating Bank Danamon into its existing business in Indonesia, Seah said.
The original deal has been tagged at $7.2 billion by DBS in April 2012, a volume that now hangs in the balance.
