As per the initial agreement, DBS was supposed to first acquire a 67.4% stake of Danamon held by the Singapore state-investment company Temasek Holdings, and then the remaining stake through a general offer.
The central bank of Indonesia permitted only 40% acquisition of Danamon Indonesia and put some corporate governance and financial health conditions to acquire the remaining stake, which the acquirer found difficult to meet.
If the agreement would have materialized, DBS would have diversified with significant market opportunities across banking products and customer segments, making use of Danamon’s universal banking platform to tap the Indonesian market.
Commenting on the issue, DBS Group CEO Piyush Gupta said, "We would like to express our deepest appreciation to the regulators in Indonesia and Singapore for giving the transaction due consideration."
"We are positive about Indonesia’s long term potential, and will continue to grow our DBS Indonesia franchise, while remaining open to opportunities as they arise."
With over 250 branches and 18,000 employees across 15 markets, DBS delivers an array of services in consumer, SME and corporate banking activities across Asia.
