Mitsubishi UFJ to buy two Asia units of Home Credit


The deal comes as Mitsubishi UFJ aims to beef up its business in Asia to tap growth in consumption in emerging markets, while ultra-low interest rates and an ageing population limit business opportunities at home. – Reuters

TOKYO: Japan’s Mitsubishi UFJ Financial Group Inc says it will buy the Philippine and Indonesian units of Dutch consumer finance company Home Credit Group BV for about €596mil (RM2.82bil).

The deal comes as Japan’s largest lender aims to beef up its business in Asia to tap growth in consumption in emerging markets, while ultra-low interest rates and an ageing population limit business opportunities at home.

Home Credit’s main services include point-of-sales loans, offered to customers for their purchases of goods and services at the point of sale both physical and online.

The acquisitions will be made through Japanese unit MUFG Bank, Thai unit Bank of Ayudhya PCL and Indonesian unit Adira Dinamika Multi Finance, with the deal to be completed within 2023, the company said.

Home Credit (HC) is controlled by the Czech Republic’s biggest investment group, PPF, which was founded by late billionaire Petr Kellner.

It reported a wider loss in the first half of 2022, mainly due to the impact from the sale of Russian operations. It said, however, all its countries except for China were profitable in the period as it recovered from the pandemic’s effects.

Mitsubishi UFJ, which owns about 22% of Morgan Stanley, is completing its US$8bil (RM36bil) sale of MUFG Union Bank to US Bancorp as part of its global business reshuffle.

Among Japanese banks, Sumitomo Mitsui Financial Group Inc said this month it would buy an additional 15% stake in the Philippines’ Rizal Commercial Banking Corp for about US$460mil (RM2.09bil).

After the completion of the deal, Bank of Ayudhya will hold 75% of the shares of HC Philippines and 75% of the shares of HC Indonesia. MUFG Bank will hold 25% of HC Philippines, and ADMF will hold 10% of HC Indonesia shares. — Reuters

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Business News

US economy grew slightly, inflation and rates cloud outlook
Wall St preps for year-end stock rally
Loan demand to buoy Malaysia banking sector
Asia factory activity shrinks on lockdowns
Greener textile and garment industry in Vietnam by 2030
Wages in Singapore up despite inflation
Aussie business investment dips in third quarter
Goldman, Commonwealth Bank at odds over rate outlook
Wall St analysts turn more bullish on Tesla
New York MTA faces US$3bil hole in 2025

Others Also Read