DBS drops bid to acquire Bank Danamon Indonesia

People walk past a branch of Bank Danamon in Jakarta on Thursday, May 23, 2013. DBS Group Holdings' torturous attempt to acquire Bank Danamon Indonesia looks is likely to have foundered. -- FILE PHOTO: AFP
People walk past a branch of Bank Danamon in Jakarta on Thursday, May 23, 2013. DBS Group Holdings' torturous attempt to acquire Bank Danamon Indonesia looks is likely to have foundered. -- FILE PHOTO: AFP

DBS Group Holdings has walked away from a deal to acquire a majority stake in Bank Danamon Indonesia, ending a long drawn-out process that began last year.

In a statement, the bank said the deadline for acquiring 100 per cent of Fullerton Financial Holding's wholly-owned subsidiary Asia Financial (Indonesia) - which holds a 67.37 per cent stake in PT Bank Danamon Indonesia - will lapse after Aug 1.

DBS chief executive Piyush Gupta said: "We would like to express our deepest appreciation to the regulators in Indonesia and Singapore for giving the transaction due consideration."

The deal has been stuck in regulatory limbo for months as the Indonesian central bank has refused to sanction it.

The bank said it remains committed to Indonesia and will continue to invest and grow its franchise in the country.