Home credit

Japanese Mitsubishi UFJ to buy two Asian units from Home Credit for $620m – source

TOKYO, Nov 23 (Reuters) – Japan’s Mitsubishi UFJ Financial Group Inc. (8306.T) is considering buying the Philippine and Indonesian units of Dutch consumer finance company Home Credit Group BV for about 600 million euros ($619 million), a person familiar with the matter said on Wednesday.

The deal comes as Japan’s biggest lender aims to bolster its business in Asia to take advantage of growing consumption in emerging markets, while ultra-low interest rates and an aging population limit business opportunities. in the country.

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

Acquisitions will be made through Bank of Ayudhya PCL (BAY) of Thailand. (BAY.BK), which is approximately 77% owned by Mitsubishi UFJ, the source said. BAY will buy 100% of Home Credit’s Filipino unit and 85% of the Indonesian unit, the source added.

The source declined to be identified as the information is not yet public. Mitsubishi UFJ could not be reached for immediate comment. The Nikkei business daily reported the case earlier.

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

It recorded a bigger loss in the first half of 2022, mainly due to the impact of the sale of the Russian business. He said, however, that all of his countries except China were profitable during the period as they recovered from the effects of the pandemic.

PPF declined to comment.

PPF’s chief financial officer told Reuters late last year that he was considering selling or taking on partners in units of the Home Credit business in certain countries. Read more

Mitsubishi UFJ, which owns around 22% of Morgan Stanley (MS.N)completes its $8 billion sale of MUFG Union Bank (MUB) (UBCAL.UL) to US Bancorp as part of its global business shakeup.

Among Japanese banks, Sumitomo Mitsui Financial Group Inc. (8316.T) said this month it would buy an additional 15% stake in Rizal Commercial Banking Corp (RCBC) in the Philippines (RCB.PS) for about $460 million. Read more

($1 = 0.9700 euros)

Reporting by Makiko Yamazaki in Tokyo, additional reporting by Jason Hovet in Prague, Editing by Louise Heavens and Tomasz Janowski

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