By Justina Lee


Japan's Mitsubishi UFJ Financial Group Inc. will buy Dutch consumer finance company Home Credit Group BV's Indonesian and Philippine units for about 596 million euros ($619.5 million) in an effort to expand its retail business in Southeast Asia.

MUFG, Japan's largest bank, said Thursday that it will acquire 100% of the shares of HC Consumer Finance Philippines Inc. and 85% of the shares of PT Home Credit Indonesia through MUFG Bank and affiliates Bank of Ayudha PCL and Adira Dinamika Multi Finance.

MUFG expects to complete the acquisition in 2023, subject to regulatory approvals. Thailand-listed Bank of Ayudhya will hold 75% stakes in each of the units after the deal is completed.

Home Credit Indonesia and Consumer Finance Philippines have "dominant market share in terms of [point of sale] loans in both countries and cumulatively serve about 13 million customers," MUFG said, adding that the acquisition represents a "continued reinforcement and expansion of our retail business in both countries."

Home Credit was founded in 1997 and provides financial services which include credit and ancillary insurance products. The company has operations in Asia as well as in Central and Eastern Europe.


Write to Justina Lee at justina.lee@wsj.com


(END) Dow Jones Newswires

11-24-22 0010ET