Indonesian e-commerce giant Tokopedia is said to have completed the migration process with ByteDance’s short video platform TikTok while MUFG-backed Adira Finance has completed the acquisition of Indonesian car loan firm Mandala Finance.
Tokopedia finalises migration system with TikTok
Indonesian e-commerce giant Tokopedia is said to have completed the migration process with ByteDance’s popular short video platform TikTok. The process was completed three months after Tokopedia and TikTok finalised their merger transactions at the end of Jan 2024.
“All of the systems have been transferred and managed by Tokopedia under Shop Tokopedia,” according to Isy Karim, director of domestic trade at the Ministry of Trade, as reported by Bisnis.com on Wednesday. The integration systems include back-end processes and payment systems.
DealStreetAsia has reached out to Isy Karim to seek an independent confirmation. When contacted, TikTok declined to comment while DealStreetAsia is yet to receive a response from Tokopedia.
The concern about TikTok Shop’s regulatory requirement was raised by Teten Masduki, Indonesian minister of cooperatives and small and medium enterprises, in September last year. TikTok Shop was said to be a potential monopoly, and the minister threatened to shut down its shopping platform.
TikTok Shop was eventually banned in late September 2023. It subsequently resumed operations two months later after GoTo’s Tokopedia announced its mega-deal with the ByteDance-owned company.
Adira Finance completes acquisition deal with Mandala Finance
PT Adira Dinamika Multi Finance, popularly called Adira Finance, has completed the acquisition of Indonesian car loan Mandala Finance for 873 billion rupiah ($56 million). Adira Finance is an Indonesian car loan provider under Mitsubishi UFJ Financial Group’s (MUFG) local subsidiary Bank Danamon.
The deal is part of MUFG’s acquisition transaction in Mandala Finance which involved an amount of 7 trillion rupiah ($465 million) as reported by Nikkei Asia in June last year. Nikkei reported that MUFG’s banking unit MUFG Bank and Adira Finance bought about 80% of the outstanding shares by the beginning of 2024 and then acquired all remaining shares via a tender offer.
After the completion of the transaction, Adira Finance holds a 10% stake in Mandala Finance, while MUFG Bank owns 70.6%, according to disclosure information published by the company on the Indonesia Stock Exchange (IDX) on Thursday.
Mandala provides loans for motorcycle purchases, logging revenue of about $125 million for the year ended Dec. 31, 2023.
MUFG believes that the acquisition of Mandala will lead to synergies, given that there is little overlap in their businesses and regions served.
