Mitsubishi UFJ Financial Group (MUFG) said it had agreed to acquire Indonesian auto loan company Mandala Multifinance to strengthen its presence in south east Asia consumer credit markets.
The Japanese bank said it had agreed to pay IDR7trn (US$467m) for the Indonesian company which would give it increased exposure to a significant and growing middle class population in and a larger footprint in the region.
MUFG already had a significant presence in Indonesia through Adira Dinamika Multi Finance, the car loan unit of MUFG’s Indonesian banking unit Bank Danamon.
The acquisition of Mandala would significantly expand MUFG’s market presence in the country and allow it to generate product, cross selling and cost cutting synergy across its Indonesia operations. Both companies offer credit packages for a broad range of consumer products, from new and used cars to motorcycles, consumer electronics and household goods such as furniture.
Earlier this year MUFG and its local partners launched a US$100m fund, called MUFG Innovation Partners Garuda No 1 Limited Investment Partnership, focused on supporting Indonesian startups.
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