Japan's Mitsubishi UFJ Financial Group settled to purchase Thailand's Bank of Ayudhya Pcl. MUFG would own the controlling stake for about JPY560 billion or US$5.61 billion. The deal transpired while Japanese moneylenders expanded.
MUFG's was set to acquire 75% of Thailand's fifth largest lender. The move was considered to be the Japanese bank's largest acquisition in Southeast Asia. The deal also ended General Electric Co's six-year-old venture in Ayudhya. GE earned US$2.41 billion due to the stake sales it made in two portfolios.
Moreover, the contract required the approval from Thailand's finance ministry. Thailand's laws only allow foreign ownership in banks up until 49%.
MUFG said in a meeting that it was confident Bangkok would "take a favorable view". MUFG added that it was taking in to account a potential merger with Ayudhya. The considerations were made so the Japanese company could comply with Thailand's bank ownership's single presence policy.
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