Indonesia’s largest private lender, PT Bank Central Asia (BCA), agreed to fully acquire the local unit of Dutch Rabobank for $20,5 million (Rp500 billion).
The acquisition is aiming to support the development of BCA’s multi finance subsidiary, BCA Finance, the bank reported in a stock filing. The acquisition plan will be funded through BCA’s internal fund, and the purchase has obtained approval from Indonesia Financial Services Authority (OJK).
Earlier this year, Rabobank Indonesia announced that it would stop operations in June 2020. The decision was made in line with the global business strategy of the Rabobank Group that would focus on the supply chain of food and agriculture products.
Last year, Bank BCA also completed the acquisition of small-sized lender Bank Royal Indonesia for Rp 1.01 trillion as part of its plan to expand the digital banking business.
BCA is taking a step-by-step approach to embark on a digital transformation journey. BCA has been taken seriously at the digital transformation in its company.
Following the corporate action, BCA plans to launch a digital bank by the end of the first semester this year; Chief Financial Officer Vera Eve Lim told Forbes Indonesia.
Recently, the Indonesian banking industry has witnessed a series of mergers and acquisitions. The momentum intensified after the government decided to relax banking regulations to facilitate such combinations. The measures enabled foreign players to invest in local lenders.