DBS Gets Indonesia Nod for Smaller Danamon Stake Than It Sought
DBS Group Holdings Ltd. (DBS), Southeast Asia’s largest lender, won approval from Indonesia’s central bank to acquire a smaller stake in PT Bank Danamon Indonesia than it had sought more than a year ago.
DBS, which in April 2012 proposed buying all of Danamon, will be allowed to buy 40 percent, Bank Indonesia Governor Darmin Nasution said in parliament today in Jakarta. DBS spokeswoman Edna Koh declined to immediately comment on the Singapore-based bank’s plans.
The decision may jeopardize DBS’s proposed $6.8 billion acquisition of Bank Danamon in what would have been Southeast Asia’s biggest banking takeover. Approval for the deal has been delayed as Indonesian authorities pushed Singapore to provide more access for that country’s lenders.
The central bank is seeking reciprocity for the three biggest state-owned Indonesian lenders’ operations in Singapore, Nasution said today.
To contact the reporter on this story: Sanat Vallikappen in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: Chitra Somayaji at email@example.com