Mergers can be interpreted as absorption from and by one company to another. In that case, the buyer will continue the identity and the name of the company in the purchase. As a buyer, they will acquire assets and bear the obligations owned by the company purchased. After a merger then a company that has been bought by another company will either lose or quit the operation as all will be taken over by the buyer company.
In Indonesia, there are some well-known companies that have practiced merging activity. To see more about merger companies, you can see these examples of poplar merger companies in Indonesia below.
The establishment of a merger company in the field of CIMB Niaga financial institutions or banks was the result of the merger of Niaga and Lippo banks in 2008. This is a union where there is a relatively smaller bank compared to other banks. Both banks, Niaga bank and Lippo bank merged with the main objective to be able to strengthen their presence in global competition.
Because the Lippo bank was relatively smaller compared to the Niaga bank, so the Lippo bank gave up its shares and planted it in Bank Niaga, with a profit sharing agreement with certain agreements that had been previously approved by both banks. And finally decided to change its name to CIMB Niaga bank.
Read also:
Indofood Sukses Makmur (INDF) merged five companies (subsidiaries). Currently INDF has 12 subsidiaries directly, including PT Indofood Consumer Branded Product (ICBP) Sukses Makmur, which has just become a subsidiary of INDF in September 2009. ICBP was originally from the INDF instant noodle division. INDF combines five subsidiaries into one company. The five subsidiaries are Success Makmur ICBP, PT Ciptakemas Abadi, PT Gizindo Prima Nusantara, PT Indobiskuit Mandiri Makmur, and PT Indosentra Pelangi.
ICBF Sukses Makmur will be the name of the company that was merged earlier. In addition to producing instant noodles, ICBP Sukses Makmur will produce food wrap, baby food, biscuits and various spices.
Bank Danamon is a bank originally named Kopra Indonesia Bank which was established in 1956. But in 1976 this bank later changed its name to Bank Danamon. This bank had become a foreign exchange bank, but in the end this bank became a bank take over.
Until the end, the Danamon bank merged with several other take over banks, namely the National Post Bank, International Salary Bank, Tiara Bank, Jayabank International Bank, National Nusa Bank and Ambassador Bank and merged and reshaped the Bank Danamon’s glory.
Read also:
The Ciputra Group property company also once merged three of its subsidiaries, namely PT Ciputra Surya Tbk. (CTRS) and PT Ciputra Properti Tbk. (CTRP) into the entity PT Ciputra Development Tbk (CTRA). The company targets that the merger can be completed in December 2016.
Ciputra Development’s merger, Ciputra Properti, and Ciputra Surya are expected to simplify the business structure so as to improve operational efficiency and organizational structure, increase share liquidity in the capital market, and strengthen financial ratios. The three companies merged three companies into one with the name Ciputra Development.
LPKR is actually one of the merger companies formed by many other companies, namely: Aryaduta hotel, Siloam health care, Abadi Sejahtera Kartika, LPLD or Lippo land development, metropolitan tatanugraha, source waluyo and Anangadipta thanks to the nobility who joined LPKR or Lippo Karawaci Tbk, which has now developed in the real estate, offices, building and land excavation scope.
In accordance with Law No. 1 of 1995 Limited Liability Company, companies that join will dissolve by law without liquidation. Later the company that will be listed on the Jakarta Stock Exchange (JSX) and Surabaya Stock Exchange (BES) is PT Lippo Karawaci Tbk (LPKR), where the date of listing of shares resulting from the merger was conducted July 16, 2004.
Read also:
Before finally becoming one of the largest banks in Indonesia, Bank Mandiri was a merger company formed from Exim bank, BBD bank or Bumi Daya bank, Bapindo bank and Dagang Negara bank. The four banks experienced difficulties and crisis to make a decision to carry out the merger process and form a consolidation. The merger of the four banks became a bank that is currently one of the largest and most trusted banks, namely Mandiri Bank.
Two local business entities from a global global insurance company, AXA Financial Indonesia (AFI) and AXA Life Indonesia (ALI) officially conducted a merger or merger which was announced on Thursday (2/11), at the JW Marriot Hotel Jakarta.
This corporate action is to fulfill the provisions of Insurance Law No.40 / 2014 related to control or sole ownership as well as the Financial Services Authority Regulation (POJK) No.67 / POJK.05 / 2016. The two companies will operate under the name “AXA Financial Indonesia” with all ALI assets as well as their liabilities to be transferred to AFI. This merger marks a strong step to continuously improve the experience and services to customers by continuing to transform.
Read also:
The last example of a merger case is the merger of a similar company (conglomerate; vertical, horizontal) that is between Trans TV and Trans 7 where both have become national private television under the auspices of Trans.corp.
PT Trans Corporation (formerly named PT Para Inti Investindo) is a business unit of the group in the media, lifestyle and entertainment fields. Initially, Trans Corp was established as a liaison between the Trans Tv television station and the television station that had just taken over 49% of its share ownership by Para Group from the Kompas Gramedia Group (KKG), Trans 7 (formerly Tv 7). Trans Corp is owned by groups led by Chairul Tanjung.
After reading all above merger companies, you can conclude that Indonesia business activity has been developed well. Not only merger companies, there have been also many startup company in Indonesia.
Are you aware that the global warming effect also affected Indonesia? The research showed that…
Have you ever heard about the most deadly landslide disaster in Indonesia? In Indonesia, during…
Have you ever heard about the landslide natural disaster in Indonesia? The country contains hills…
Have you ever heard about forest fires and natural disasters in Indonesia? The country is…
Have you ever heard about Papua? It is one of the islands in Indonesia that…
Have you ever heard about Banten? Banten is one of the provinces in Indonesia that…