Sumitomo And MUFG 'Competition' Caplok Bank Panin

JAKARTA - Sumitomo Mitsui Financial Group Inc (SMFG) is reportedly planning to acquire shares of PT Bank Pan Indonesia Tbk (PNBN) or Bank Panin. This means that Sumitomo Mitsui is competing with Mitsubishi UFJ Financial Group Inc (MUFG) in launching its expansion into Southeast Asia.

In Bloomberg's report, quoted on Tuesday, August 23, Sumitomo Mitsui Financial Group (SMFG) is in discussion with advisors and is conducting due diligence on the offer that SMFG will provide to Panin Bank. MUFG did the same thing.

However, until now, there has been no decision regarding this acquisition. Meanwhile, MUFG is still the strongest candidate for the winner.

If MUFG eventually becomes a shareholder of Bank Panin, MUFG may propose the merger of Bank Panin with PT Bank Danamon Indonesia Tbk (BDMN) as part of the agreement.

To note, SMFG previously took a similar action by acquiring PT BTPN Tbk in 2013. The largest shareholders of Bank Panin itself are the Gunawan family with 46 percent shares and Australia and New Zealand (ANZ) Banking Group Ltd with 38.8 percent.

Furthermore, a representative source from Bank Panin said that it respects the rights and decisions of shareholders and declined to comment. Likewise, representatives from ANZ and SMFG, as well as Panin Financial, owned by the Gunawan family, also declined to comment.