Singapore-based OCBC has inked an agreement to acquire Commonwealth Bank of Australia's Indonesia unit.
Bank OCBC NISP has entered a binding agreement to acquire 99 percent of Bank Commonwealth in Indonesia for 2.2 trillion rupiah ($142 million), according to a statement. Bank OCBC NISP and Bank Commonwealth are subsidiaries of OCBC and Commonwealth Bank of Australia, respectively.
The transaction is expected to conclude in the second or third quarter of 2024, subject to the approval of financial regulators in Indonesia and Singapore. Following the transaction, Bank Commonwealth will be merged into Bank OCBC NISP. This is expected to create synergy and boost the franchise value of OCBC due limited overlap in customer relationships between the two lenders.
Bank Commonwealth was established in 1997 and as of 30 September 2023, its net asset value totalled 4.1 trillion rupiah.
