MUFG Bank, part of Japanese financial services group MUFG, has increased its stakes in Indonesian lenders Bank Danamon and Bank Nusantara Parahyangan (Bank BNP).

In case of Bank Danamon, MUFG has increased its stake to 94.1%.

Previously, MUFG owned a stake of 40% in the Indonesian bank.

In case of Bank BNP, MUFG raised its stake to 99.9% from 7.9%.

MUFG’s consolidated subsidiary ACOM has a 67.6% holding in Bank BNP.

The two Indonesian lenders will now be consolidated subsidiaries of MUFG and MUFG Bank.

In this process, Bank Danamon will be the surviving entity while Bank BNP will be the absorbed entity.

The consolidated group will operate in around 1,200 locations and have staff headcount of 33,857.

The group will manage $13.8bn in total assets.

The consolidation is expected to be wrapped up on 1 May 2019.

MUFG Bank will get 188,908,053 Bank Danamon shares in lieu of Bank BNP shares.

The Japanese bank will own 9,196,854,799 Bank Danamon ordinary shares post-merger.

Commenting on the development, MUFG noted: “Upon completion of the merger, MUFG will drive further collaboration and synergies with Bank Danamon (as the surviving bank post-merger) and other partner banks.

“MUFG will provide clients with comprehensive financial services in Indonesia, and contribute to the growth of Indonesian economy.”