Clash of the giants in Japan
(26 August 2004 – Japan) Sumitomo Mitsui Financial Group has made an aggressive bid for UFJ Holdings in an attempt to thwart rival Mitsubishi Tokyo Financial Group getting its hands on the bank, a merger that would create the world’s largest bank by assets.
The takeover of UFJ is strategically vital for both banks as the bank that fails to land its prey will find itself trailing the newly merged entity and Mizuho Financial Group by some distance in the Japanese bank stakes.
MTFG said it was pushing ahead with its plans to merge with UFJ and that it is carrying out due diligence on the bank. But the SMFG bid puts pressure on MTFG to improve its offer.
UFJ is the fourth largest bank in Japan and has been struggling for the past three years.
Banks in Japan have had to explore new ways to grow after years of bad debts and slowing lending to corporates.
MTFG said it was pushing ahead with its plans to merge with UFJ and that it is carrying out due diligence on the bank. But the SMFG bid puts pressure on MTFG to improve its offer.
UFJ is the fourth largest bank in Japan and has been struggling for the past three years.
Banks in Japan have had to explore new ways to grow after years of bad debts and slowing lending to corporates.
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