Reuters

MUMBAI: Japan&#39;s Mitsubishi UFJ Financial Group 8306.T is in advanced talks to buy a 20% stake in Indian non-banking finance company Shriram Finance SHMF.NS for 232 billion rupees ($2.61 billion), the Economic Times reported on Wednesday, citing people familiar with the matter.&nbsp;A deal would mark the latest move by a Japanese financial institution to acquire a stake in an Indian firm, following the banking arm of rival Sumitomo Mitsui Financial Group 8316.Tbuilding a 24.2% holding in Mumbai-based Yes Bank YESB.NS.&nbsp;Facing a shrinking domestic market and years of rock-bottom interest rates, Japan&#39;s biggest banks have enthusiastically sought out targets overseas for many years.&nbsp;MUFG - Japan&#39;s largest lender by assets - owns a 23.62% stake in Wall Street investment bank Morgan Stanley MS.N.&nbsp;The Japanese bank declined to comment on the report, while Shriram Finance did not immediately respond to a Reuters request for comment.&nbsp;The investment will be through a primary issuance via a preferential allotment and will not entail any secondary sale of shares, the newspaper said, adding that both MUFG and Shriram Finance have signed an exclusivity agreement on negotiations.&nbsp;The Tokyo-based banking leader is, however, not averse to taking a higher stake in the company or even a controlling interest, over time, the report said.&nbsp;Shriram Finance reported an 8.8% year-on-year rise in standalone profit at 21.56 billion rupees for the quarter ended June 30. Its results were slightly below the analysts&#39; average estimate of 21.91 billion rupees, according to data compiled by LSEG.

Asia

Japan’s MUFG is in advanced talks to acquire a 20% stake in India’s Shriram Finance for $2.61 billion, aiming to expand abroad amid domestic challenges; both firms have signed an exclusivity agreement.

Articles tagged with "Stake"

MUFG in talks for $2.6 billion stake in India's Shriram Finance, Economic Times reports