JAPAN’S Mitsubishi UFJ Financial Group plans to buy the Philippines and Indonesian units of Dutch consumer finance company Home Credit Group BV for about 600 million euros (S$857.1 million), a person familiar with the matter said on Wednesday (Nov 23).

The deal comes as Japan’s largest lender aims to beef up its business in Asia to tap growth in consumption in emerging markets, while ultra-low interest rates and an aging population limit business opportunities at home.

Home Credit’s main services include point-of-sales loans, offered to customers for their purchases of goods and services at the point of sale both physical and online.

The acquisitions will be made through Thailand’s Bank of Ayudhya (BAY), about 77 per cent owned by Mitsubishi UFJ, the source said. BAY will buy the entire stake in Home Credit’s Philippines unit and 85 per cent of the Indonesian unit, the source added.

The source declined to be identified as the information is not public yet. Mitsubishi UFJ could not be reached for immediate comment. The Nikkei business daily earlier reported the deal.

Among Japanese banks, Sumitomo Mitsui Financial Group said this month it would buy an additional 15 per cent stake in the Philippines’ Rizal Commercial Banking Corp (RCBC) for about US$460 million.

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Mitsubishi UFJ is completing its US$8 billion sale of MUFG Union Bank (MUB) to US Bancorp. REUTERS