MUFG to acquire Home Credit’s subsidiaries in Philippines and Indonesia


Japan’s Mitsubishi UFJ Financial Group (MUFG) and Bank have agreed to buy 100% of HC Consumer Finance Philippines (HC Philippines) and 85% of the shares of Home Credit Indonesia (HC Indonesia), both subsidiaries of Home Credit (HC) for around €596 million (nearly ¥87 billion).

The acquisition is part of and MUFG Bank’s strategy to improve their business in Southeast through the creation of business platforms in the region in association with partner banks in which bank has invested.

The transaction is expected to help further cement and expand its retail business in the Philippines and Indonesia.

The acquisition will be executed through Bank and its subsidiaries — -based Bank of Ayudhya Public (Krungsri) and Indonesian finance company PT. Adira Dinamika Multi Finance (ADMF).

MUFG to acquire Home Credit’s subsidiaries in Philippines and Indonesia

to acquire Home Credit’s subsidiaries in Philippines and Indonesia. Photo courtesy of Suikotei/Wikimedia Commons.

Home Credit, which is headquartered in the Netherlands, is a consumer finance company involved in consumer lending, mostly in point of sales (POS) loans.

HC Consumer Finance Philippines and Home Credit have a combined 13 million loan customers and are said to have dominant market shares as far as POS loans in both countries are concerned. Besides, their app is claimed to have been downloaded 20 million times in the Philippines and Indonesia.

Post-closing, Krungsri and MUFG Bank will hold 75% and 25% shares, respectively, in HC Consumer Finance Philippines.

In Home Credit Indonesia, Krungsri and ADMF will hold 75% and 10% shares, respectively.

Subject to regulatory authorities’ approval, the transaction is anticipated to be completed within 2023.

MUFG already has presence in the Philippines and via Security Bank Corporation and Bank Danamon Indonesia.

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