Japan’s MUFG Bank has received regulatory approval from the Financial Services Authority of Indonesia (OJK) to increase its stake in PT Bank Danamon Indonesia.

MUFG Bank can now proceed to acquire an additional 20.1% from Asia Financial (Indonesia) and other affiliated entities.

In December last year, MUFG signed an conditional share purchase agreement with Asia Financial (Indonesia) and other associated entities to acquire up to a 73.8% shareholding stake in Danamon in three steps.

The first step, completed in December saw MUFG Bank to purchase a 19.9% stake in Danamon for IDR15.875tn ($1.171bn).

The second step, which involved raising Danamon stakes to 40%, required regulatory and other relevant approvals.

Stake increase as soon as practicable

MUFG in a statement said that it is planning to “complete its acquisition of the additional 20.1% shareholding interests as soon as practicable subject to other closing conditions customary for a transaction of this nature.”

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After the completion of the second step, MUFG is required to seek the necessary approvals again to increase its stake up to 73.8%.

The acquisition of Danamon is a part of the MUFG Bank’s strategy to increase and strengthen its presence in Asia & Oceania.

In Indonesia, MUFG operates a full services branch in Jakarta, one sub-branch in Surabaya as well as nine service points across the country.