MNC Bank and Nobu Bank Merger Plans Cancelled After Nearly Three Years

Background and Initial Plans

The planned merger between PT Bank MNC Internasional Tbk (BABP) and PT Bank Nationalnobu Tbk (NOBU) was first announced in February 2023. Both banks were struggling to meet the minimum capital requirement of Rp3 trillion as mandated by OJK regulation POJK 12/2020. The merger was seen as a strategic move to strengthen their capital base and enhance their competitiveness in the Indonesian banking sector.

Progress and Challenges

By March 2023, both banks confirmed that the merger process was underway, with the signing of a preliminary agreement. The combined assets of the two banks were expected to reach Rp37.9 trillion based on their January 2023 financial reports. Despite the initial optimism, the merger process faced significant challenges, particularly regarding ownership structure and business direction post-merger.

Key Developments Leading to Cancellation

1. Hanwha Life Insurance's Acquisition: In a significant development, Hanwha Life Insurance Co., Ltd. acquired a 40% stake in NOBU in 2025, becoming the largest shareholder. This acquisition altered the ownership dynamics and reduced the likelihood of the merger.
2. OJK's Involvement: The OJK had been closely monitoring the merger process and had even considered the possibility of a forced merger if the banks failed to reach an agreement.
3. Stagnation in Merger Progress: Despite the initial target of completing the merger by August 2023, the process stalled due to disagreements between the major shareholders of both banks, including Hary Tanoesoedibjo and James Riady.

Official Cancellation and Future Directions

On November 22, 2025, the OJK officially announced the cancellation of the merger plans. Instead of merging, the OJK has advised both banks to focus on their individual growth targets and strengthen their capital structure through additional capital injections or by inviting new strategic investors. This decision marks the end of nearly three years of negotiations and legal assessments between the two banks.

Market Implications

The cancellation of the merger reflects the challenges faced by Indonesian banks in meeting the OJK's capital requirements through consolidation. It also highlights the dynamic nature of banking sector restructuring, where external factors such as significant share acquisitions can alter the course of planned corporate actions.