Bangkok Bank's bid for Permata reflects Thailand's overseas M&A ambition

Cityscape of Downtown Bangkok. Photo: Andreas Brücker/unsplash

It’s only fitting that Thailand’s second-largest bank pipped a Japanese rival to buy a lender in Indonesia. The elixir of youth is a great attraction to those who no longer have it.

Just like in Japan, the aging Thai population is propelling the economy into long-term stagnation, leaving the likes of Bangkok Bank Pcl with no choice except to seek their fortunes in younger societies bubbling over with credit demand at juicy yields. Hence, the $2.7 billion bid for 90% of Indonesia’s PT Bank Permata.

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