Japan banking behemoth purchases US$743 mil. stake in Vietnam lender
AFPHANOI -- Japan's biggest bank Mitsubishi UFJ on Thursday bought a 20-percent stake worth US$743 million in state-owned VietinBank, the largest-ever foreign investment in Vietnam's banking sector.
December 28, 2012, 12:56 am TWN
The deal aims to boost “support for Japanese companies operating in Vietnam,” Bank of Tokyo-Mitsubishi UFJ President Nobuyuki Hirano said Thursday, and to tap Southeast Asian markets after seeing its profits tumble this year.
The Japanese bank last month reported profit in the six months to September dived 58 percent year-on-year to US$3.6 billion, due partly to declines in stock holdings.
VietinBank, or Vietnam Joint Stock Commercial Bank for Industry and Trade, said the majority of its shares will still be owned by the State Bank of Vietnam but it described the deal as “the largest ever M&A (mergers and acquisitions) transaction” in Vietnam's banking sector.