Top Banks Mull Mergers, Acquisitions
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11 March 2019 09:25 WIB
TEMPO.CO, Jakarta - Big banks are starting to explore plans for acquisitions and mergers with small banks. The plan is aimed at having more control over smaller banks that have the potential to sustain business expansion agendas.
Bank Mandiri, for example, is reportedly going to buy shares of Bank Permata, after Standard Chartered Bank, as the main shareholder of Permata, announced its plan for divestment.
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Bank Tabungan Negara (BTN) has also revealed its plan to buy shares of other banks. However, BTN's director for strategy, risk and compliance Mahelan Prabantarikso said that consolidation is not an easy matter. It requires time and has a number of challenges, especially in terms of corporate governance.
Meanwhile, Bank Central Asia (BCA) is said to be acquiring several banks, one of which is Bank Royal Indonesia.
BCA President Director, Jahja Setiaatmadja, said that the acquisition process of the BUKU I banks would be completed after obtaining approval from the general shareholders' meeting next month.
GHOIDA RAHMAH
