Mitsubishi UFJ Financial Group’s (MUFG) core banking arm MUFG Bank has decided to offload its stake in Hong Kong-based financial group Dah Sing Financial Holdings.
Japan-based MUFG Bank has already divested 31.63 million shares or nearly a 10% stake of Dah Sing and intends to sell the remaining stake in the financial year ending March 2023.
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The sale is part of a review of MUFG’s existing investments to optimise its management resources on a global basis.
MUFG’s peer Norinchukin Bank is said to have acquired its stake in Dah Sing for an undisclosed sum.
According to Bloomberg, a Norinchukin spokesperson confirmed the deal but did not elaborate on the terms of the transaction.
In a statement, Norinchukin said that it has entered into a strategic business cooperation agreement with Dah Sing.
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By GlobalDataThrough the deal, Norinchukin hopes to promote the export of Japanese food and agricultural products to the Greater Bay Area.
Norinchukin noted that the deal complements its China strategy to cater to customers in the region and capitalise on new opportunities in the Greater Bay area.
“The agreement enables both parties to enhance their financial services through cooperation in the areas such as local currencies settlement, financing, business matching, M&A advisory, among others, which benefits customers of each bank,” it added.
Last year, MUFG announced plans to exit the US retail banking market via an $8bn deal with US Bancorp.
