Japanese banking major Mitsubishi UFJ Financial Group (MUFG) is closing in on the deal to buy Home Credit’s operations in Indonesia and the Philippines, Bloomberg reported citing sources. 

MUFG has managed to outbid other rivals and emerged as the likeliest suitor in the race to buy the assets, the sources said, adding that the combined value of assets in both countries could be around $500m or more. 

Home Credit is the consumer banking arm of Czech investment group PPF. 

The talks to negotiate the terms of the deal are still ongoing and the parties could reach an agreement as early as next month. 

The deal could get still face delays or even fail to materialise, the sources warned.

As per the report, Home Credit has been in touch with advisers for both partnerships and the sale of assets in Southeast Asia and India to raise capital for the group. 

It is looking to raise up to $2.5bn from the operations in Indonesia, Vietnam, the Philippines, and India. 

The retail bank tried to sell India and Vietnam assets as part of the latest deal but most bidders showed interest only in a portion of the deal, the sources said.

Among other interested parties were MUFG’s peers including Mizuho Financial Group and Sumitomo Mitsui Financial Group besides Grab Holdings, a Singapore-based ride-hailing and delivery giant. 

Last month, media reports emerged that the Tokyo-based MUFG is interested in buying a stake in PT Bank Pan Indonesia.