DBS Danamon

DBS’s $7.2 billion bid for Danamon collapses

DBS’s decision not to pursue Bank Danamon clears the way for others to bid for Indonesia’s sixth-biggest lender by assets, say bankers.
Piyush Gupta, DBS
Piyush Gupta, DBS

DBS said on Wednesday that it would let its offer to buy a 67.37% stake in Bank Danamon Indonesia lapse, thwarted by Jakarta’s decision to limit its influence over the bank.

DBS had planned to buy the stake in Danamon from Singaporean state-run investment fund Temasek Holdings, but it become embroiled in a political tit-for-tat between Singapore and Indonesia over reciprocity of market access.

We would like to express our deepest appreciation to the regulators in Indonesia and Singapore for giving the transaction due consideration,” said Piyush Gupta, chief executive of DBS in a statement on Wednesday.

However, the deal’s collapse could pave the...

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