Sumitomo Mitsui Seeks Pastures Abroad
The Japanese financial group is reportedly looking to purchase an Asian lender and team up with a global investment bank on U.S. dealmaking, after missing out on a corporate financing boom this year.
Sumitomo Mitsui Financial Group (SMFG) is weighing targets in Vietnam, the Philippines and India, and is looking for a partner to underwrite equity and bond sales in the U.S. and elsewhere, chief executive Jun Ohta told «Bloomberg» in an interview on Tuesday.
«It may not immediately lead to a profit increase, but we’re going to buy what will provide a business platform in emerging countries from a long-term perspective,» Ohta said (behind paywall), without revealing any companies on his list of targets.
A tie-up with a large securities firm would also help SMFG boost its overseas investment banking business. The bank would offer loans in exchange for a bigger role in bond and stock underwriting, Ohta said.
Growth Opportunities
According to SMFG's medium-term management plan, the firm aims to increase profits by optimizing and remodeling its businesses, while pursuing new growth opportunities.
Ohta cited India's growth potential, and that it is considering acquiring in Vietnam, where it already has a 15 percent stake in local lender Eximbank.
Last year, SMFG failed to acquire Indonesian lender Bank Permata, which eventually went to Bangkok Bank. «It was very painful to miss out on Permata,» Ohta said.
