Japan’s Mitsubishi UFJ Financial Group has agreed to buy Amsterdam-based Home Credit's businesses in the Philippines and Indonesia to strengthen its foothold in Asia.
MUFG will acquire the Philippines and Indonesia units of Home Credit for 596 million euros ($621 million), according to a statement.
MUFG Bank and MUFG subsidiaries, Bank of Ayudhya Public Company Limited (Krungsri) and Adira Dinamika Multi Finance (ADMF), will acquire 100 percent of HC Consumer Finance Philippines and an 85 percent stake in Home Credit Indonesia.
The deal, subject to regulatory approval, is expected to be completed within 2023.
Southeast Asia Expansion
According to MUFG, the acquisition «represents a continued reinforcement and expansion of our retail business in both countries».
«MUFG and MUFG Bank aim to strengthen their business in Southeast Asia through the establishment of business platforms in the region in collaboration with partner banks in which MUFG bank has invested,» the Japanese lender said.
Founded in 1997, Netherlands-headquartered Home Credit is a consumer finance firm owned by Czech investment group PPF.
