Mitsubishi UFJ Lease to buy Hitachi Capital in deal worth US$2.8b
[TOKYO] Japan's Mitsubishi UFJ Lease said on Thursday it would buy smaller rival Hitachi Capital in a deal calculated at US$2.8 billion.
The two companies formed a capital alliance in 2016 and had been negotiating a merger since, they said in a joint statement.
The deal would help the new company, to be set up in April, to compete with global competitors, they said.
Mitsubishi UFJ Lease would give 571 million shares to shareholders of Hitachi Capital, making the deal worth about 294 billion yen (S$3.84 billion) based on Mitsubishi UFJ Lease's closing price of 515 yen on Thursday.
Hitachi Capital has a market value of 319 billion yen based on Thursday's close.
The two companies will have assets worth about 10 trillion yen and almost 10,000 employees, they said.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Their combined revenue will be around 1.4 trillion yen, a Reuters calculation showed.
Japanese business magazine Diamond reported the transaction earlier on Thursday. The Tokyo Stock Exchange suspended trading in both companies' shares following the report.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Gazelle Ventures makes cash offer for No Signboard shares at S$0.0021 apiece
P&G raises annual core profit forecast on resilient demand, price hikes
Cordlife calls for trading halt after shares sink to all-time low, pending announcement
Marina Bay Sands Q1 profit surges 51.5% to US$597 million on tourism boom
Swiss watch exports plunge as China and Hong Kong demand dries up
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO