Commonwealth Denies to Acquisition Bank Ekonomi

SYDNEY- Commonwealth Bank of Australia (CBA), the country's second largest bank by assets, was unlikely to buy Indonesia's PT Bank Ekonomi Raharja Tbk or BAEK.JK, an industry source on Wednesday (27/8).

CBA and HSBC had expressed interest in the Indonesian lender, after controlling shareholder Wings Group indicated a desire to sell. Bank Ekonomi is worth about A$592 million ($506 million), and had an initial public offering of about 10 percent of its share capital early this year, the Australian said.

The source, who declined to be identified, said CBA had held talks to acquire the Indonesian bank but was unlikely to win due to competition from other potential bidders.

Earlier this month, CBA withdrew from discussions with Royal Bank of Scotland (to acquire ABN AMRO Australia, after which CBA Chief Executive Ralph Norris said the bank would continue to look for acquisition opportunities. Australian banks have been looking for growth in Asia, with Australia and New Zealand Banking Group Ltd, Australia's third-largest lender, topping the list of investments in the area, now represented in Cambodia, China, Indonesia, Laos, Malaysia Philippines and Vietnam.

CBA has offices in Indonesia, Hong Kong and Singapore.