Indonesian state-run lender Bank Mandiri is reportedly planning to acquire rival lender Bank Permata, which is backed by Standard Chartered.

According to a Bloomberg report, the lender is currently working with Morgan Stanley to advance the deal.

Bank Permata acquisition:

Bank Mandiri is planning to acquire a controlling stake in Bank Permata and then merge it with itself or its unit PT Bank Mandiri Taspen, known as Bank Mantap, unnamed sources told the publication.

Permata currently market valuation is more than $2.2bn as its shares risen by 75% this year. The 11th largest bank in the country, Permata reported $64m in net income last year.

The move comes at a time when Standard Chartered, which is the joint-largest shareholder of Permata, reclassified the Indonesian bank as a non-core business.

It is expected to raise around $1bn by selling its 44.6% stake in Permata. PT Astra International also holds a 44.6% stake in Permata.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The plan is part of its three-year strategy to increase return on equity to more than 10% by 2021.

Mandiri is yet to start formal discussions over the transaction. However, if the deal materialises, it will look to complete the Bank Permata acquisition by this year, Bloomberg report added.

The move was not confirmed by Mandiri and Standard Chartered officials or representatives.