MUFG Bank, a consolidated subsidiary of Mitsubishi UFJ Financial Group (MUFG), has cancelled its acquisition of DVB Bank (DVB)’s Aviation Investment Management and Asset Management businesses.
According to the announcement dated 1 March 2019, MUFG Bank and Japanese leasing firm BOT Lease, have signed an agreement with DVB to buy DVB’s Aviation Finance business division.
All of the DVB’s aviation finance client lending portfolio valuing around €4bn, employees and other parts of the operating infrastructure were transferred to MUFG Bank, by 18 November 2019.
DVB businesses planned to be transferred to new subsidiary of BOT Lease
DVB’s Aviation Investment Management and Asset Management businesses were planned to be moved to a newly established subsidiary of BOT Lease.
According to MUFG, the transfer of the businesses has become difficult to complete as per the originally planned form, as the approval from relevant authorities was not fully obtained in each country.
MUFG said that its medium-to long-term aviation finance business policy will be offered without any change, and is expected to focus on developing aviation finance business based on DVB’s experienced professionals and in-depth industry capabilities.
The cancellation of DVB’s Aviation Investment Management and Asset Management businesses is expected to pose minimal financial impact on MUFG.
Tokyo-based MUFG offers commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing services, through 180,000 employees working across a global network of over 2,700 locations across more than 50 countries.
In August, the firm has signed a joint venture agreement with Liquidity Capital, an Israeli fintech company, to launch a debt financing company for start-ups in Asia-Pacific region.
Under the terms of the agreement, MUFG Bank and Liquidity Capital are expected to form a joint venture company dubbed Mars Growth Capital in Singapore.
