Mitsubishi UFJ Financial and Mitsubishi UFG Bank’s consolidated subsidiary Bank of Ayudhya Public Company Limited-Krungsri announced on Thursday, 30th June 2022, that it had reached an agreement with Nomura Asia Investment, Singapore Pty Ltd., a consolidated subsidiary of Nomura Holdings, Inc., to acquire 99.1% of outstanding shares in Capital Nomura Securities Public Company Limited (CNS). The acquisition cost is expected to be a maximum of 5.4 billion baht (USD 153 million).
Eventually, Krungsri plans to acquire 100% of shares in CNS, including the remaining 0.9% held by other shareholders, by the end of 2022. The Acquisition is subject to approval at its general meeting of shareholders and by the relevant regulatory authorities.
Japanese financial group to boost presence in top Southeast Asian equity market
The shift comes with the inflating Thai securities market. Thailand has Southeast Asia’s largest securities market, with an exchange value of around 55 trillion yen (USD 404 billion). The number of participating investors increased more than 20% over the past few years.
Mitsubishi UFJ Financial acquired the Bank of Ayudhya, Thailand’s fifth-largest lender by assets, in 2013. The latest move led to the expansion of its Thai business from savings to brokering investments.
Since 2014, The Thai securities broker has been a subsidiary of Nomura Holdings. But Nomura has been manoeuvring its business towards corporate clients and with mergers and acquisitions advisory services while focusing less on retail business divisions such as CNS.
In recent times, Japanese banks have assertively expanded into Southeast Asia. In an advancement, Mitsubishi UFJ Financial plans to sell its U.S. subsidiary, MUFJ Union Bank, for USD 8 billion and invest some of the proceeds in Southeast Asia.
In 2021, Sumitomo Mitsui Financial Group invested in the financial institutions of the Philippines, Vietnam, and India. Meanwhile, Mizuho Bank has invested in Tonik Financial, which runs a digital bank in the Philippines.
About Nomura Group
Nomura holding, Inc. is a holding that conducts investment and financial services businesses with an emphasis on securities businesses. The group has an integrated network spanning over 30 countries and regions. Founded in 1925, the firm was built on a tradition of disciplined entrepreneurship, considered through leadership, and serving clients with creative solutions.
By connecting markets to the east and west, the company caters to the needs of individuals, institutions, corporates, and governments. The three business divisions are classified into Retail, Wholesale Global Markets, Investment Banking, and Investment Management. Driven by the insights of some 26,000 people worldwide, the company aims to place the clients at the centre of everything they do by delivering unparalleled access to, from, and within Asia.
About Mitsubishi UFJ Financial
Mitsubishi UFJ Financial Group, Inc. is one of the world’s leading financial services groups and one of the largest banking institutions in Japan. MUFJ has a global network in nearly 2,400 locations in more than 50 countries. MUFJ is headquartered in Tokyo and with over 360 years of history. The group has about 170,000 employees and offers commercial banking, securities, trust banking, credit cards, asset management, consumer finance, and leasing services.
The company also aims to flexibly respond to all the financial needs of their customers, serving society and fostering shared and sustainable growth for a better world. Mitsubishi UFJ Financial Group’s shares trade on the Tokyo, Nagoya, and New York stock exchanges.