CBA possible suitor in Indonesia
Industrial and Commercial Bank of China and Qatar National Bank are others also looking at the banking unit, Reuters reported without citing sources.
First-round bids are due by the end of January, and some suitors are already working with financial advisers to place indicative proposals, Reuters reported.
Given CBA's dominance in Australia, analysts believe new chief executive Ian Narev will push ahead with a measured expansion offshore, mostly through existing banking investments in Indonesia and China.
While ANZ has been spearheading the expansion of Australian banks into Asia, CBA has been quietly building operations in China and Indonesia.
CBA has already outlined plans to expand to 150 branches in its Jakarta-based banking arm, up from a little over 100 now. In China CBA's investments extend to a 20 per cent stake in two regional banks.
The interest in Rabobank's Indonesian business reflects foreign banks' desires to increase their presence in south-east Asia's largest economy; although, of the population of 240 million, half do not have bank accounts.
Dutch-based Rabobank, which is dominant in agribusiness lending, is selling off small and non-strategic businesses to focus on its core agricultural market.
Commonwealth Bank, ICBC and Qatar National Bank each declined to comment.
Any deal would be subject to Indonesia's new bank ownership rules that cap foreign ownership in domestic banks at 40 per cent, subject to some exemptions from the central bank.
Frequently Asked Questions about this Article…
Yes. Reuters reported that Commonwealth Bank (CBA) is one of several global lenders expected to submit preliminary bids to buy Rabobank's Indonesian unit in a deal reported at about US$400 million. Other potential suitors named include Industrial and Commercial Bank of China (ICBC) and Qatar National Bank.
The deal for Rabobank's Indonesian unit was reported to be about US$400 million (approximately $380 million).
According to the report, first-round bids are due by the end of January, and some suitors are already working with financial advisers to place indicative proposals.
The report says foreign banks want to increase their presence in south‑east Asia’s largest economy. Indonesia has a population of about 240 million, and roughly half the population does not have bank accounts, presenting growth opportunities for banks expanding into the market.
Any deal would be subject to Indonesia’s new bank ownership rules, which cap foreign ownership in domestic banks at 40 per cent, although there are some exemptions from the central bank.
The report states Dutch‑based Rabobank is selling small and non‑strategic businesses to focus on its core agricultural market; Rabobank is dominant in agribusiness lending.
Analysts quoted in the report believe new CBA chief executive Ian Narev will pursue measured offshore expansion, mainly through existing investments in Indonesia and China. CBA has been quietly building operations in China and Indonesia, including plans to grow its Jakarta banking arm from a little over 100 branches to 150 and holding a 20 per cent stake in two regional Chinese banks.
Industrial and Commercial Bank of China (ICBC) and Qatar National Bank were also reported as potential suitors. The story notes that Commonwealth Bank, ICBC and Qatar National Bank each declined to comment.
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