DBS, Singapore’s biggest bank, has been given approval by Indonesia’s central bank to purchase 40% of Bank Danamon. If Singapore permits Indonesian lenders to open more branches in the city-state, then it could lead to a full takeover and would be Indonesia’s largest ever foreign acquisition.
DBS will pay Temasek $2.75 billion for the holding. The state-owned investment company owns 67% of Danamon and holds a 29.7% controlling interest in DBS. In April 2012, DBS made a bid to buy the whole of Danamon, but was prevented by new rules introduced in Indonesia in July that limited individual ownership of its banks to...
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