Tokyo FinTech
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Tokyo FinTech

MUFG to acquire consumer finance businesses in the Philippines & Indonesia

In a move designed to re-deploy the proceeds from the MUFG Union Bank disposal, and further strengthen its position in South East Asia, MUFG announced that it has decided to acquire 100.0% of the shares of HC Consumer Finance Philippines, and 85.0% of the shares of PT Home Credit Indonesia, for an acquisition cost of approximately JPY 87bn. The acquisition is expected to be completed within 2023, subject to the receipt of approvals from the relevant regulatory authorities.

Coming from the Czech Republic, and headquartered in the Netherlands, Home Credit (HC) is a consumer finance company engaged in consumer lending, primarily in POS loans. Customers are able to complete the process of loan application, execution, and collection seamlessly through the superior UI/UX of its app. HC also has advantages in conducting precise and fast credit screening through its utilization of both internal and external data and its distinct screening model.

HC Philippines and HC Indonesia especially have high brand recognition and customer satisfaction; having dominant market shares in terms of POS loans in both countries, their app has been downloaded 20 million times in the two countries, and they have a cumulative total of 13 million loan customers. Although MUFG already has a certain presence in the Philippines and Indonesia through investments in their affiliate Security Bank Corporation and subsidiary PT Bank Danamon Indonesia Tbk, this acquisition represents a continued reinforcement and expansion of their retail business in both countries.

After the completion of the acquisition, Krungsri will hold 75% of the shares of HC Philippines and 75% of the shares of HC Indonesia, MUFG Bank will hold 25% of the shares of HC Philippines, and PT. Adira Dinamika Multi Finance, a finance company in Indonesia, will hold 10% of shares of HC Indonesia.

MUFG and MUFG Bank aim to strengthen their business in Southeast Asia through the establishment of business platforms in the region in collaboration with partner banks in which MUFG bank has invested. In executing this strategy, we will continue striving to contribute to the growth of Southeast Asia.

Source: MUFG press release

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Norbert Gehrke

Passionate about strategy & innovation across Asia. At home in Japan. Connector of people & ideas.