DBS

DBS: According to Dow Jones, Bank Indonesia has cleared the way for DBS acquisition of Bank Danamon for $7.3b, although caution that DBS and Danamon has declined comments. Bankers with knowledge of the transaction said DBS will be permitted to acquire 40% of Danamon, the initial limit for bank acquisitions in Indonesia—before building up a majority stake if it meets the central bank's corporate-governance and financial-health standards. Recall in its recent interview, DBS CEO note aims to pursue a universal banking model in Indo if the acquisition of Danamon is successful, as it would enable the grp to cement its position in Asean’s largest economy and enable DBS to control trade and financing flows btwn North Asia, South Asia and Asean. Most market watchers are positive of the acquisition, citing the strong growth potential and economy size, which would contribute positively to DBS grp’s earnings and diversify contributions further from its domestic market.