Indonesian lenders PT Bank Danamon Indonesia (Bank Danamon) and PT Bank Nusantara Parahyangan (Bank BNP) are to merge.
Bank Danamon will be the surviving bank of the merger.
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Bank Danamon-Bank BNP merger details
Mitsubishi UFJ Financial Group’s (MUFG) core banking subsidiary MUFG Bank holds 40% of the shares in Bank Danamon while MUFG’s consolidated subsidiary ACOM owns 67.59% stake in Bank BNP.
MUFG is expected to hold more than 40% of the shares of the combined lender.
“With expected synergies of the merger, we look forward to harmonizing Bank Danamon and Bank BNP’s capabilities to enable MUFG group to present a more integrated and unparalleled suite of business solutions to customers in Indonesia”, MUFG said in a statement.
The collaboration and synergy areas include automotive financing, retail banking, digital innovation and risk management capabilities.
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By GlobalDataThe proposed synergy will be implemented through the transfer of technology and expertise from MUFG and its Asian partner banks to the Bank Danamon employees.
In a separate statement, Bank Danamon said that the merger will help bolster its banking footprint in Indonesia.
Bank Danamon also aims to leverage MUFG capabilities to drive its growth and deliver long-term value to all stakeholders.
The Bank Danamon-Bank BNP merger is subject to shareholder consent and relevant regulatory approvals.
In August last year, MUFG Bank received regulatory approval to increase its stake in Bank Danamon to 40%.
