Mitsubishi UFJ Eyes Stake in Shriram Finance

Japan's Mitsubishi UFJ Financial Group is reportedly in advanced discussions to acquire a 20% stake in Indian non-banking finance company Shriram Finance, according to a report by the Economic Times.

This potential acquisition, valued at 232 billion rupees ($2.61 billion), highlights the ongoing strategy of Japanese financial institutions targeting overseas markets, pressured by a stagnant domestic economy. Notably, Sumitomo Mitsui Financial Group recently expanded its presence in India with a substantial stake in Yes Bank.

Shriram Finance has dismissed rumors of a potential deal as speculative. An exclusivity agreement between the parties is in place, suggesting negotiations are underway. Meanwhile, Shriram Finance shares rose 3.5% following the news.

(With inputs from agencies.)