Japan’s Mitsubishi UFJ Financial Group (MUFG) bank has announced its decision to acquire a 50 percent stake in SB Finance in a deal worth $47.2 million. MUFG intends to strengthen its position in the Philippines by providing its financial products to a greater portion of the country’s population. The bank already owns a 20 percent stake in SB Finance’s parent company Security Bank.
After the completion of the transaction, the two banks will combine their expertise as well as experiences. Together, they will develop quality consumer finance products for the people of Philippines. Their collaboration is expected to help SB Finance build its stronghold in the Philippines’ high growth consumer finance market.
MUFG bank will make the investment for SB Finance through Bank of Ayudhya, commonly referred to as Krungsri. MUFG also owns a majority stake in Bank of Ayudhya, which is Japan’s fifth largest bank in terms of assets. It is also the largest provider of unsecured loans in Thailand.
“Security Bank and Krungsri are both committed to accelerating customer-centricity in banking. By localising the strategies that propelled Krungsri to become Thailand’s market leader in consumer finance, SB Finance is well-positioned to scale the business faster, launch better and more innovative product variants, serve more customers and, in effect, substantially grow its market share in retail business,” Security Bank President and Chief Executive Officer Sanjiv Vohra told the Philippines stock exchange.
Earlier, Mitsubishi UFJ Trust and Banking, a subsidiary of MUFG also announced the acquisition of shares of nine subsidiaries of Colonial First State Global Asset Management. The shares were acquired from Commonwealth Bank of Australia and its subsidiary Colonial First State Group. Mitsubishi UFJ Trust and Banking will acquire a 100 percent stake in these subsidiaries at a cost of $2.7 billion.