Mitsubishi UFJ Financial Group (MUFG) entered into conditional share purchase agreements with Asia Financial Indonesia and other affiliated entities to acquire their shareholding interests in PT Bank Danamon Indonesia, the fifth most profitable Indonesian commercial bank by earnings. The sellers currently hold in aggregate 73.8% shareholding interests in Danamon.

The investment, subject to the usual regulatory and shareholder approvals, will result in MUFG becoming the largest shareholder in Danamon. It will serve as an expansion of the group’s presence in Indonesia and reflects its belief in the country’s long-term prospects. MUFG expects that this investment in Danamon will positively contribute to the growth of the Indonesian banking sector and economy as a whole.

Takayoshi Futae, MUFG’s CEO for the Asia and Oceania region said, “As one of the leading banks in Asia and Oceania, we have long recognized Indonesia’s role as one of the key drivers of the region’s development and have sought to establish a stronger presence in the country. We are supportive of the leadership of Danamon’s management, and are confident that our future collaboration will create synergies that would allow us to better serve customers and shareholders and enhance our mutual growth.”

Tokyo-based Mitsubishi UFJ Financial Group is one of the world’s leading financial groups, with total assets of approximately $2.7 trillion.