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Japan's BTMU plans controlling stake in Indonesia's Bank Danamon

$6bn deal, if approved, would be biggest overseas buy for a Japanese bank

Bank Danamon is Indonesia's fifth-largest bank by market value.   © Reuters

TOKYO -- Bank of Tokyo-Mitsubishi UFJ has agreed to purchases that lead to a majority stake in Indonesia's Bank Danamon, a deal potentially worth 700 billion yen ($6.18 billion) in a country that normally restricts foreign investors to minority ownership of banks.

The acquisition will be conducted in three stages, BTMU said Tuesday. The Japanese megabank will spend 133.4 billion yen to acquire the initial 19.9% stake from affiliates of Singaporean state wealth fund Temasek Holdings by Sunday. An additional 20.1% will be added around the middle of next year.

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