Mitsubishi UFJ Financial Group, Inc. (MUFG), a Tokyo-headquartered bank holding company, has encountered a stumbling block in its negotiations for a stake in HDB Financial Services Ltd. According to media reports, people familiar with the matter said that the current stalemate is about input in business strategies.
MUFG Negotiations For An HDB Stake On Hold
MUFG is vying for a minority share in HDB’s consumer lending unit. Should the talks fall flat, the India-based institution may reportedly consider an initial public offering (IPO). Currently, however, there is no confirmation either way.
According to Bloomberg data, those in the know stated that there are no final decisions on the table and the deal may yet materialise if HDB allows MUFG to have more say in the core decisions. To date, none of these parties have offered any comments.
MUFG wants to expand its footprint in India and offered $1.7bn for a 20% share in HBD. This offer was made earlier in 2024. According to unconfirmed reports, MUFG has since upped its offer. Bloomberg stated that Japanese lenders have been looking at alternative investments throughout Asia to diversify revenue streams.
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In February 2024, MUFG appointed Jordan Hollander as the director of its high-yield credit research team to maximise its credit division. Jordan brings to the table 18 years of experience in capital structure and five years in corporate finance and investment banking. This appointment confirms MUFG’s continued growth agenda. At the time, Michael Yarian, the group’s international head of sales and trading, said:
Leveraged Credit is a pillar of growth for our banking and capital markets businesses, and we will continue to build our capabilities in Sales and Trading to support both our issuer and investor clients.
