Japan's MUFG Bank to take over Indonesian peer

Bank Danamon to merge with a local group lender as first step

A woman walks in front of Bank Danamon headquarters in Jakarta. MUFG has gradually increased its ownership of the Indonesian bank. © Reuters

Nikkei staff writers

January 23, 2019 02:48 JST

TOKYO -- MUFG Bank announced Tuesday that equity-method affiliate Bank Danamon Indonesia will merge with an Indonesian group lender as part of a plan to turn the former into a wholly owned subsidiary.

Danamon, Indonesia's fifth largest commercial bank 40% owned by MUFG, will be the surviving entity after the integration with Bank Nusantara Parahyangan, which is owned 67.59% by Mitsubishi UFJ Financial Group's consumer finance unit Acom.