South Korea-based Shinhan Bank, part of Shinhan Financial Group, has received regulatory approval to purchase a 40% stake in Indonesia-based Bank Metro Express.
Irwan Lubis, deputy commissioner for banking supervision at the Indonesian regulator, told Reuters that the price of acquisition is expected to be worth IDR700bn.
However, a Shinhan Bank spokesman refused to disclose the purchase price.
Muliaman Hadad, chairman of the board of commissioners at Indonesia’s financial services authority, said that the agreement had been approved by the regulators.
"But of course, this cooperation has to be based on a principle that benefits both sides," Hadad added.
The deal, which was initially announced in 2012, will allow Shinhan Bank to expand its presence in Indonesia.