The Japanese Mitsubishi UFJ Financial Group Inc announced the purchase of the Philippine and Indonesian units of the Dutch consumer credit company Home Credit BV (HC) for about 596 million euros ($ 621 million).
The Japanese banking and financial holding company seeks to strengthen its business in Asia by using consumption growth in developing markets, while ultra-low interest rates and the aging population limit the opportunities for business in Japan.
Home Credit BV is mainly engaged in loans at points of sales offered to customers for the purchase of goods and services both physical and online.
The acquisitions will be carried out through the main banking division of Mitsubishi UFJ Mufg Bank, the Thai division of Bank of Ayudhya PCL (Bay), and the Indonesian division of Adira Dinamika Multi Finance (ADMF). The transaction according to the plans will be completed within 2023.
Home Credit is under the control of a large investment group of the Czech Republic of PPF. The company incurred large losses in the first half of 2022, mainly due to the impact of the sale of Russian operations.
PPF, which considered the possibility of selling or attracting partners in some HC business markets, said in her statement that the time has come for this transaction.
Mitsubishi UFJ, which has about 22% Morgan Stanley, finishes the sale of MUFG Union Bank (MUB) US Bancorp for $ 8 billion in the framework of global business restructuring.
The representative of Mitsubishi UFJ said at a briefing that the creditor will study the additional possibilities of acquiring in Southeast Asia.
Also, the Japanese bank Sumitomo Mitsui Financial Group Inc has recently stated that he would buy an additional 15% of the Philippines’ Rizal Commercial Banking Corp (RCBC) for about $ 460 million.
After the purchase, the Bank of Ayudhya will own 75% of Home Credit Philippines and 75% of Home Credit Indonesia shares. MUFG Bank will own 25% of the Home Credit Philippines shares, and ADMF will have 10% of the Home Credit Indonesia shares.
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