Mitsubishi UFJ Monetary Group Inc.’s (MUFG) plans to amass a stake in HDFC Financial institution Ltd.’s shopper lending arm, HDB Monetary Companies Ltd., have hit a snag on account of disagreements over the Japanese lender’s affect on enterprise technique, in response to Bloomberg.
Earlier this yr, MUFG was reportedly eyeing a 20% stake in HDBF for about US$1.7 billion.
Sources conversant in the matter revealed that whereas MUFG stays concerned about HDB Monetary Companies, the continued negotiations could also be delayed and even collapse on account of these variations.
An alternate for HDFC may very well be an preliminary public providing of the buyer lending unit.
The sticking level seems to be the extent of management MUFG would have over HDBF’s technique, with no last selections made as of but.
Negotiations may probably resume if MUFG is obtainable higher say in decision-making.
MUFG’s pursuit of this deal displays a broader technique to increase its presence in India, the place HDB Monetary Companies presents a spread of companies together with private, gold, and auto loans.
Featured picture credit score: Edited from Freepik
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