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Mitsubishi UFJ (MUFG) to Buy MFIN for Southeast Asia Expansion
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Mitsubishi UFJ Financial Group’s (MUFG - Free Report) consolidated subsidiary MUFG Bank, Ltd. along with its consolidated subsidiary PT Adira Dinamika Multi Finance Tbk (“ADMF”) announces a plan to acquire an 80.6% stake in PT Mandala Multifinance Tbk (“MFIN”) for around IDR7,042 billion.
The acquisition was in agreement with PT Jayamandiri Gemasejati and other shareholders. Completion of the deal, subject to relevant regulatory authorities' approval, is expected by early 2024.
Post-acquisition, MUFG Bank, holding 70.6% shares of MFIN, would become its largest shareholder while ADMF would be the owner of 10% shares of the company. Following the buyout, MUFG Bank is anticipating a mandatory tender offer to be conducted per Indonesian regulations for the remaining 19.4% stake in MFIN.
MFIN is a leading multi-finance company, primarily offering auto loans and multi-purpose loan products in Indonesia. Hence, with this acquisition, MUFG will tap on MFIN’s product expertise and geographic presence to expand its auto loan business and bolster its presence in Indonesia.
Markedly, MUFG Bank already has a presence in the country through its Jakarta branch and PT Bank Danamon Indonesia Tbk. Expecting a high GDP growth rate going forward in Indonesia, MUFG’s efforts to expand in the region on the back of acquisitions are a strategic fit.
Aiming to strengthen its footprint in Southeast Asia, it has been establishing business platforms in the region through significant acquisitions. In November 2022, MUFG announced plans to acquire 100% and 80% stakes, respectively, in Home Credit B.V.’s units, HC Consumer Finance Philippines, Inc. (HC Philippines) and PT Home Credit Indonesia (HC Indonesia), expanding its retail business in Asia.
MUFG’s shares have gained 5.8% on the NYSE over the past six months compared with the industry’s growth of 5%.
Inorganic Expansion Efforts by Others in the Finance Sector
JPMorganChase & Co. (JPM - Free Report) has formed a strategic alliance with Cleareye.ai, a financial technology firm focused on trade finance. Trade finance refers to the financial products offered by institutions that seek to facilitate global trade by reducing counterparty risk between importers and exporters.
JPM’s investment in Cleareye.ai leverages the ClearTrade platform, solving the challenges faced by trade finance (the industry is undergoing a digital transformation).
Tradeweb Markets Inc. (TW - Free Report) , a leading global operator of electronic marketplaces and money markets, entered into a definitive agreement to acquire Yieldbroker, a prominent Australia-based trading platform, in an all-cash transaction of A$125 million. The deal's closing, subject to customary conditions and regulatory reviews, is expected by the end of this year.
The transaction will facilitate a more liquid, transparent and efficient fixed-income market by bringing together innovative trading solutions and deep industry experience of both companies. Hence, the acquisition aligns with TW’s mission to make markets more efficient.
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Mitsubishi UFJ (MUFG) to Buy MFIN for Southeast Asia Expansion
Mitsubishi UFJ Financial Group’s (MUFG - Free Report) consolidated subsidiary MUFG Bank, Ltd. along with its consolidated subsidiary PT Adira Dinamika Multi Finance Tbk (“ADMF”) announces a plan to acquire an 80.6% stake in PT Mandala Multifinance Tbk (“MFIN”) for around IDR7,042 billion.
The acquisition was in agreement with PT Jayamandiri Gemasejati and other shareholders. Completion of the deal, subject to relevant regulatory authorities' approval, is expected by early 2024.
Post-acquisition, MUFG Bank, holding 70.6% shares of MFIN, would become its largest shareholder while ADMF would be the owner of 10% shares of the company. Following the buyout, MUFG Bank is anticipating a mandatory tender offer to be conducted per Indonesian regulations for the remaining 19.4% stake in MFIN.
MFIN is a leading multi-finance company, primarily offering auto loans and multi-purpose loan products in Indonesia. Hence, with this acquisition, MUFG will tap on MFIN’s product expertise and geographic presence to expand its auto loan business and bolster its presence in Indonesia.
Markedly, MUFG Bank already has a presence in the country through its Jakarta branch and PT Bank Danamon Indonesia Tbk. Expecting a high GDP growth rate going forward in Indonesia, MUFG’s efforts to expand in the region on the back of acquisitions are a strategic fit.
Aiming to strengthen its footprint in Southeast Asia, it has been establishing business platforms in the region through significant acquisitions. In November 2022, MUFG announced plans to acquire 100% and 80% stakes, respectively, in Home Credit B.V.’s units, HC Consumer Finance Philippines, Inc. (HC Philippines) and PT Home Credit Indonesia (HC Indonesia), expanding its retail business in Asia.
MUFG’s shares have gained 5.8% on the NYSE over the past six months compared with the industry’s growth of 5%.
Image Source: Zacks Investment Research
Currently, MUFG carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Expansion Efforts by Others in the Finance Sector
JPMorganChase & Co. (JPM - Free Report) has formed a strategic alliance with Cleareye.ai, a financial technology firm focused on trade finance. Trade finance refers to the financial products offered by institutions that seek to facilitate global trade by reducing counterparty risk between importers and exporters.
JPM’s investment in Cleareye.ai leverages the ClearTrade platform, solving the challenges faced by trade finance (the industry is undergoing a digital transformation).
Tradeweb Markets Inc. (TW - Free Report) , a leading global operator of electronic marketplaces and money markets, entered into a definitive agreement to acquire Yieldbroker, a prominent Australia-based trading platform, in an all-cash transaction of A$125 million. The deal's closing, subject to customary conditions and regulatory reviews, is expected by the end of this year.
The transaction will facilitate a more liquid, transparent and efficient fixed-income market by bringing together innovative trading solutions and deep industry experience of both companies. Hence, the acquisition aligns with TW’s mission to make markets more efficient.