EFFECTIVENESS OF ACQUISITION ON THE STABILITY AND PROFITABILITY OF PT BANK DANAMON INDONESIA TBK

Abstract

This study investigates how Mitsubishi UFJ Financial Group (MUFG)'s acquisition of PT Bank Danamon Indonesia Tbk (BDMN) improved the company's profitability and financial stability. This acquisition represents MUFG's strategic move to expand in Southeast Asia, particularly in the Indonesian banking sector. It is expected that this acquisition will help strengthen Bank Danamon's capital structure and improve its operational efficiency. This study employed a comparative quantitative approach. Secondary data came from Bank Danamon's annual financial reports from 2017–2018 (before the acquisition) and 2020–2022 (after the acquisition). To identify significant differences in financial ratios before and after the acquisition, analyses were conducted using the Shapiro–Wilk normality test and the Wilcoxon Signed Rank Test. Return on Assets (ROA), Return on Equity (ROE), Debt to Asset Ratio (DAR), and Debt to Equity Ratio (DER) were used to measure profitability and financial stability. This research is expected to contribute to the advancement of banking finance and assist financial institutions in evaluating effective acquisition strategies in Indonesia