Mitsubishi UFJ Eyes Stake in Shriram Finance

Japan's Mitsubishi UFJ Financial Group is in advanced talks to acquire a 20% stake in India's Shriram Finance for 232 billion rupees. This move continues the trend of Japanese banks seeking overseas investments due to domestic challenges. Shriram Finance denies knowledge of any deal amid market speculation.

Japan's Mitsubishi UFJ Financial Group is reportedly in advanced discussions to acquire a 20% stake in Indian non-banking finance company Shriram Finance, according to a report by the Economic Times.

This potential acquisition, valued at 232 billion rupees ($2.61 billion), highlights the ongoing strategy of Japanese financial institutions targeting overseas markets, pressured by a stagnant domestic economy. Notably, Sumitomo Mitsui Financial Group recently expanded its presence in India with a substantial stake in Yes Bank.

Shriram Finance has dismissed rumors of a potential deal as speculative. An exclusivity agreement between the parties is in place, suggesting negotiations are underway. Meanwhile, Shriram Finance shares rose 3.5% following the news.