Merger could follow Bank Danamon takeover

Bank Danamon to merge with Bank DBS Indonesia if deal pushes through.

Danamon President Director Henry Ho said the merger is likely if Bank Indonesia approves Singapore DBS Group’s proposal to acquire Danamon. BI has not approved the deal.

Ho said that if the acquisition plan was approved by BI, Danamon would likely be merged with Bank DBS’ existing subsidiary, Bank DBS Indonesia.

The merger must comply with BI’s single-presence policy that requires banks controlled by the same owner to be merged.

“So, the natural, logical thing to do is to merge the two banks,” Ho said.
“There will be no impact on the business because they will be complementary. It is a plus for everybody.”

In April 2012, DBS, Southeast Asia’s largest bank by assets, saidit planned to acquire a 99% stake in Danamon for US$6.8 billion. The deal will make DBS Southeast Asia’s largest bank acquisition and turn Danamon into Indonesia’s fifth-largest lender.

DBS is controlled by Singapore state investment firm Temasek Holdings Pte. Ltd. Danamon is 67.4% owned by Asia Financial (Indonesia) Pte. Ltd., which is also controlled by Temasek.