According to the Nikkei newspaper, Mitsubishi UFJ Financial Group (MUFG) of Japan paid roughly US$4.1 billion to purchase Bank of Ayudhya Pcl BAY.BK. The deal is a part of MUFG's expansion into overseas market through the acquisition of Thailand's fifth biggest lender.
The Nikkei reported that this would be the largest acquisition by a Japanese bank in Asia. The total amount was at Y400 billion. Same newspaper added that it would be the second biggest foreign acquisition by a Japanese bank following in the Y900 billion MUFG acquisition of the 21% stake in Morgan Stanley, a US brokerage firm.
Without citing sources, Nikkei reported that a tender offer was launched to purchase 51% of shares in Bank of Ayudhya. This will include acquisition of conglomerate General Electric Co's 25% stake in the Thai lender.
The deal is in its final stage and aimed to announce acquisition by early next month. MUFG discussed with Bank of Ayudhya's family owners and General Electric, the Nikkei said.
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