The Bank of Tokyo-Mitsubishi UFJ (BTMU) has signed an agreement to acquire 20% stake of Vietnam Joint Stock Commercial Bank for Industry and Trade’s (VietinBank).
Following the completion of acquisition, for approximately US$742m, VietinBank will become an equity method affiliate of BTMU.
Under the terms, BTMU will appoint two directors to the VietinBank board. The collaboration between BTMU and VietinBank is expected to expand the BTMU’s business through measures such as strengthening support for Japanese companies operating in Vietnam with several financial services such as cash management and settlement services.
In order to further develop banking operations and management services, BTMU will also offer technical support to VietinBank in areas such as risk management, etc.
The transaction is likely to close during 2013 and is subject to regulatory approvals and other conditions precedents.
VietinBank is a major Vietnamese state-owned commercial bank by asset size, offering diversified financial services.
BTMU has been supporting Japanese companies in Vietnam ever since it opened the Ho Chi Minh City Branch in 1996 and Hanoi Branch in 1998.