DBS Group Holdings Ltd. (DBS) has put an end to its acquisition bid for PT Bank Danamon Indonesia. The bid was valued at USD6.5 billion and could have been the largest banking takeover in Southeast Asia. The takeover was ended after failing to win regulators' approval for a majority stake.

In a statement issued by Singapore-based DBS yesterday, the company said that the agreement to purchase DBS from Temasek Holdings Pte's Fullerton Financial Holdings subsidiary will lapse following today's deadline. DBS proposed to buy 99% control in the bank in April of last year that included 67% stake from Fullertion.

The failure of the deal had caused a setback for DBS CEO, Piyush Gupta. His expansion ambitions into fast-growing nations and decreasing reliance on Southeast Asia's least profitable loan market, toppled after failing to meet regulatory approvals. The deal was hobbled after Indonesia's banking rules limit DBS to acquire 40% stake in the company.