CBA to Bid on Rabobank

Commonwealth Bank is rumored to be one of the bidders to purchase the Indonesian unit of Rabobank. Reports indicate that CBA is pursuing a US$400 million deal, or about $380 million.

The first round of bids is expected by the end of January 2013. Other bidders are now working with their financial consultants for the indicative proposals. Reports showed that Qatar National Bank and Industrial and Commercial Bank of China are some of the bidders.

Industry analysts say that CBA will aggressively push to win the bid. Through the leadership of its chief executive Ian Narev, CBA has made concrete plans to expand abroad via banking investments specifically in Indonesia and China.

The bank is also planning to further expand its branches in Jakarta, Indonesia, adding 50 more branches to its existing 100. In China, CBA is planning to increase its shares in two regional banks.

CBA’s interest with Rabobank’s Indonesian unit aims to have a greater presence in Indonesia. Although the country has 240 million citizens, 50 percent of the population does not have any bank account.

Rabobank is a Dutch-based bank with specialization in agribusiness lending.