Mitsubishi to strengthen alliance with CIMB

Mitsubishi USJ Financial Group Inc plans to strengthen its capital alliance with CIMB group to boost its banking business in South-East Asia.

It is selling its 29.9% stake in Kim Eng Holdings Ltd for 34 billion yen to Maybank.

Mitsubishi UFJ, which owns 4.1% of CIMB, wants to increase equity and bond underwriting in the region with its partner's corporate client network, the Japanese's brokerage unit said in a statement yesterday. The Japanese banking group's stake sale in Kim Eng is part of Maybank's takeover of Singaporean stockbroker Kim Eng.

Mitsubishi UFJ is seeking to utilise its stake in CIMB group to maintain a presence in Asean, as its smaller rival Sumitomo Mitsui Financial Group was rumoured to be eyeing Abu Dhabi Commercial Bank's 25% stake in RHB Cap.

ADCB's was seeking to sell its stake in RHB Cap as part of its rationalisation programme and also in line with Abu Dhabi's plan to rationalise its banking assets under a single umbrella.

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