Japanese bank announces Singapore acquisition
(31 January 2017 – Asia) Japanese banking group Resona Holdings revealed this week that it has agreed to fully buy Singapore's AFC Merchant Bank to expand business in Southeast Asia.
The acquisition marks the group’s first takeover since it was formed with several banks under the current name in 2002.
The group’s subsidiary Resona Bank plans to fully acquire the Singapore based lender by September. AFC Merchant Bank was founded in 1981 in a bid to support infrastructure development in Southeast Asia, holding total assets of about S$91 million (A$84 million).
Resona Holdings aims to boost its overseas business as a large number of small and midsized Japanese firms have tapped into other countries and territories in Asia.
Resona Bank has a joint venture bank in Indonesia and representative offices in such countries as Singapore and Thailand. Its main operation in Southeast Asia and India is to introduce local financial institutions to Japanese companies in the areas
The buyout will pave the way for the Japanese bank to directly lend money to the companies via AFC Merchant Bank. Resona Bank also plans to enhance its merger and acquisition advisory services.
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