BANGKOK/HONG KONG: A US$5.6 billion bid by Japan's Mitsubishi UFJ Financial Group(MUFG) for a majority stake in Thailand's Bank of Ayudhya Pcl may pave the way for more foreign acquisitions of Thai banks as regulatory restrictions ease.
Thailand's central bank wants to boost the competitiveness of its banking sector to attract more foreign investment into Southeast Asia's second-largest economy. For foreign lenders keen to tap the region's booming economies, gaining control is key to make their investments worthwhile.