Indonesian lender Bank Central Asia (BCA) has brokered a deal to acquire the local subsidiary of Rabobank, amid growing number of consolidations in the Southeast Asian nation.

According to Nikkei Asian Review, BCA will acquire Rabobank Indonesia through its subsidiary BCA Finance for $28.3m. The bank will purchase all Rabobank Indonesia shares to close the acquisition.

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The deal comes months after Rabobank announced its intention to exit the country.

The acquisition is aimed to support the ‘development of BCA subsidiaries’ existing businesses’, the publication quoted the bank as saying in a stock filing.

BCA will also explore the possibility of merging Rabobank Indonesia with one of its subsidiaries.

The completion of the deal is subject to regulatory approvals.

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If the deal moves ahead, it will be BCA’s second bank acquisition this year. In October, the lender finalised the purchase of Bank Royal Indonesia.

In recent times, the Indonesian banking industry has witnessed a series of mergers and acquisitions. The momentum intensified after the government decided to relax banking regulations to facilitate such combinations. The measures enabled foreign players to invest in local lenders.

A state-owned lender Bank Mandiri is also eyeing to acquire a smaller local bank. In March, reports came in that Bank Mandiri is planning to acquire Standard Chartered-backed rival lender Bank Permata.

Indonesia’s banking industry faces stiff competition from expanding regional players as well as growing number of fintechs.