Japan's MUFG locked in business negotiations with RBS
Japan's largest bank plans to acquire RBS' project financing business
Japanese bank Mitsubishi UFJ Financial Group (MUFG) is locked in business negotiations with Royal Bank of Scotland (RBS) to buy its project finance business.
MUFG, the largest bank in Japan, plans to purchase the UK firm's loan assets and its infrastructure loans in Europe, Middle East and Africa for around £4 billion, reports Nikkei newspaper.
The Japanese firm is talking with both RBS and the British government over the deal as the UK company is 83 per cent owned by the state after it received a significant bail-out package.
MUFG is planning to reach a final agreement by the end of the year or early in 2011.
It has been aiming to expand its presence in overseas markets and views the RBS project finance portfolio as a stable stream of profits in an uncertain market.
Furthermore, the Japanese yen has recently increased in value compared with other major currencies which has driven the deal forward.