Japan's MUFG to buy Bank of Ayudhya stake for $5.6 billion

Japan’s Mitsubishi UFJ Financial Group has agreed to buy up to 75% of Thailand’s Bank of Ayudhya for 560 billion $5.6 billion, marking the largest purchase of a Thai bank in history.

The deal is the biggest in a string of purchases by Japanese financial institutions as they look to expand outside of their home market, where loan growth is sluggish, and tap into Southeast Asia’s fast-growing economies.

MUFG’s unit Bank of Tokyo-Mitsubishi UFJ will launch a tender offer for Ayudhya’s shares at Bt39 a share in early November. As part of the deal, GE Capital has agreed to tender its entire 25.33% stake in...