What will DBS gain from its Bank Danamon stake purchase?

Buying control of the Indonesian bank will solidify its regional position and open up new sources for growth.

In fact, when the deal is done, CIMB expects Indonesia to become the second largest market for DBS, overtaking even the bustling Hong Kong market.

Here's more from CIMB:

Post-deal, Indonesia will leapfrog Hong Kong as DBS's 2nd biggest market. Strategically, the business fit also looks good. Danamon (BDMN) provides DBS with a bigger developing markets profile (to justify higher valuations?). In Indonesia, BDMN gives DBS the network to rival CIMB and UOB in the region. DBS can lend its funding advantage and capital strength to BDMN, lifting BDMN's previous growth inhibitors. Over time, DBS can port over its strength in corporate banking, treasury and wealth management to Indonesia as new growth drivers.

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