MUFG, Hitachi Lease Units to Buy Stakes in Each Other in Tie-Up

  • Banking group, lease unit to pay 43% premium on shares
  • Hitachi Capital will buy shares from the stock market

Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, and Hitachi Ltd.’s lease units are buying shares in each other to strengthen ties and improve efficiency.

Mitsubishi UFJ Financial will buy 23 percent of Hitachi Capital from its parent and the leasing unit will purchase 4.2 percent of the company, according to a joint statement Friday. Hitachi Capital said separately that it will buy 3 percent of Mitsubishi UFJ Lease & Finance Co.

The companies will also develop an open financing platform, part of Hitachi’s strategy to use Big Data to improve service and boost sales. Japanese financial institutions are expanding their leasing operations, with Sumitomo Mitsui Finance & Leasing Co. agreeing to buy General Electric Co.’s Japanese leasing business last year, to tap new opportunities.

MUFG and its leasing unit are paying a 43 percent premium on the shares they are buying from Hitachi, compared with the closing price on Wednesday. Hitachi Capital will buy shares from the stock market, it said.

Hitachi Capital shares rose as much as 7.4 percent to 2,650 yen and traded at 2,506 yen as of 2:32 p.m. in Tokyo. Mitsubishi UFJ Lease fell 1.6 percent to 485 yen.

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