Indonesia bank M&A offers buyers growth and challenges - Fitch | Outlook data
(Insider Stories) - Reports that two large Japanese banks are interested in PT Bank Tabungan Pensiunan Nasional (IDX:BTPN) highlight interest in Indonesia’s banking sector due to its growth potential, but high prices and restrictions on bank ownership are potential risks, Fitch Ratings says in a report.
“We believe that overpayment in the absence of synergistic benefits could increase the risk of goodwill write-offs for the acquiring institutions,” it says. “We expect synergies resulting from acquisitions of Indonesian banks to be limited, particularly if a buyer does not gain control.” Whether Bank Indonesia decides to allow Singapore’s DBS Holdings Ltd. (SI:DBSM) to exceed the 40% foreign ownership cap in its ongoing attempt to buy a majority share in PT Bank Danamon (IDX:BDMN) could set a precedent, it says.
The full text of the report is attached below, and related Fitch research is available here.
Fitch-Indonesian Bank M&A Offers Buyers Growth and Challenges
