<div id="readability-page-1"><div><p>[SINGAPORE] OCBC substantially outbid rivals in a recent deal to buy HSBC Holdings’s retail and wealth assets in Indonesia, by more than US$100 million in most cases, according to people familiar with the matter.</p><p>Only the second-highest bid was within US$100 million of OCBC’s, the people said, asking not to be identified because the information is private. The higher offer allowed OCBC to enter bilateral negotiations to finalise the deal, the people said.</p><p>Representatives for OCBC and HSBC declined to comment.</p><p>OCBC agreed to acquire the HSBC assets earlier this month to deepen its presence in South-east Asia’s largest economy. The price of the transaction was calculated based on the net asset value of HSBC Indonesia’s International Wealth and Premier Banking operations and a premium of up to about S$480 million, OCBC said. The difference between OCBC’s offer and others hasn’t previously been reported.</p><p>The value is subject to adjustments and will be finalised after the deal is completed, potentially in the first half of next year, pending regulatory approvals, OCBC said. The amount was decided on a “willing-buyer, willing-seller basis,” taking into account business prospects and potential synergies, according to the bank.</p><p>Other shortlisted bidders included Singaporean lenders DBS and UOB, Malaysia’s CIMB Group Holdings and Japan’s Sumitomo Mitsui Financial Group, people familiar with the matter have said.</p><div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p>Fast-growing markets such as Indonesia have attracted banks looking to expand. OCBC has a presence in Indonesia with its Jakarta-listed subsidiary Bank OCBC NISP Tbk, and it has grown in the country both organically and via acquisitions, including buying Commonwealth Bank of Australia’s local unit in 2024.</p><p>The HSBC purchase will be the first by new OCBC chief executive officer Tan Teck Long, who is planning a deeper push into Asia, including in the affluent segment in Hong Kong and expanding private banking in Indonesia. As part of the deal, OCBC will offer to employ all 1,300 staff working in HSBC Indonesia’s retail banking operations, the bank said.</p><p>Analysts have so far reacted positively to the rationale of the deal. Bloomberg Intelligence analysts Sarah Jane Mahmud and Alison Hor said it will boost OCBC’s South-east Asian franchise and strengthen profit margins and fees. It “should be modestly earnings accretive, excluding one-time integration costs,” they wrote.</p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="4052" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/6df748af2d65fa508ab5b17b16871fa790cc738a86403603fda82b9dbf2f9bff/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="6079" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/6df748af2d65fa508ab5b17b16871fa790cc738a86403603fda82b9dbf2f9bff/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>OCBC Hong Kong to lift wealth RM headcount by 30% as revenue heads for double-digit growth</span></h3><p></p></div></div><div><div><div><p><img height="3070" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/e79f52659c7d134118f3eff7c2d5112848880ed2a7fd92591c15a453a06a3146/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="4605" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/e79f52659c7d134118f3eff7c2d5112848880ed2a7fd92591c15a453a06a3146/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>OCBC signs 5-year partnership with Australian government to boost regional investment, trade</span></h3><p></p></div></div><div><div><div><p><img height="4052" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/6df748af2d65fa508ab5b17b16871fa790cc738a86403603fda82b9dbf2f9bff/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="6079" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/6df748af2d65fa508ab5b17b16871fa790cc738a86403603fda82b9dbf2f9bff/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>OCBC shares pare gains to close 0.2% up after Q1 profit beats estimates</span></h3><p></p></div></div></div></div></div></div><p>Tan has said the HSBC Indonesia assets are “a perfect fit” for OCBC’s Indonesia strategy, and the total portfolio of S$6.6 billion will also accelerate the bank’s growing wealth business. The HSBC portfolio had deposits of S$2.3 billion and a much smaller S$300 million customer retail loan book. BLOOMBERG</p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

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<p>OCBC has outbid competitors by over US$100 million to acquire HSBC's retail and wealth assets in Indonesia, entering bilateral negotiations for the deal. The transaction, valued based on net asset value and a premium of up to S$480 million, aims to strengthen OCBC's presence in Southeast Asia. The deal is expected to be finalized in the first half of next year, pending regulatory approvals. Analysts view the acquisition positively, anticipating it will enhance OCBC's profitability and growth in the region.</p>

- OCBC has significantly outbid other contenders to acquire HSBC's retail and wealth assets in Indonesia, exceeding rival offers by more than US$100 million.  
- The deal, aimed at enhancing OCBC’s presence in Southeast Asia, is valued based on HSBC Indonesia's net asset value and a premium of approximately S$480 million, subject to regulatory approval.  
- This acquisition, which includes employing all 1,300 HSBC Indonesia retail staff, marks the first major move for OCBC's new CEO as the bank seeks to expand its operations in the region.

OCBC outbids banks on HSBC Indonesia deal by wide margin: sources