Friday, December 28, 2007

Bank Lippo and Bank Niaga to merge

Khazanah Nasional Berhad would be conducting feasibility study to merge its two Indonesian banks to comply with Indonesia's new regulations. Khazanah has a 93% stake in Bank Lippo, the 10th largest bank in Indonesia (with total asset of 33.4 trillion rupiah) and an indirect 64% stake in Bank Niaga (through CIMB bank), the 7th largest bank in Indonesia (with total asset of 46.5 trillion rupiah).

The merged entity would become the 6th largest bank in Indonesia. It is expected to have more mergers as well, as Temasek Holdings & Indonesian Government are facing such issues as well to merge their holdings in Indonesian banks.

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