Oversea-Chinese Banking Corp. has emerged as the preferred bidder for HSBC Holdings Plc’s retail operations in Indonesia, according to people familiar with the matter. The Singaporean lender aims to acquire the consumer business, which could be valued at more than 6 trillion rupiah ($350 million), as part of its strategy to expand in Southeast Asia’s largest economy.

HSBC has been restructuring its global retail footprint, and Indonesia represents a key market for growth. OCBC’s move signals its ambition to strengthen its regional presence through strategic acquisitions. The deal, if completed, would mark a significant expansion for OCBC in the Indonesian banking sector, where competition among regional players is intensifying.

The negotiations are private, and no final agreement has been reached yet. OCBC’s potential acquisition underscores the ongoing consolidation in Southeast Asia’s banking industry as lenders seek to capture growth opportunities in emerging markets. For HSBC, the sale aligns with its broader strategy to streamline operations and focus on more profitable markets.