MUFG Seeks $2.6 Billion Shriram Finance Stake, ET Reports (2)

Mitsubishi UFJ Financial Group is in advanced talks to purchase a 20% stake in Shriram Finance Ltd. for about $2.6 billion, the Economic Times reports, citing unidentified people familiar with the matter.

Both sides have signed an exclusivity agreement on negotiations, according to the publication. MUFG’s investment will be through a primary issuance via a preferential allotment and will not entail any secondary sale of shares, the Economic Times said.

Any deal by Japan’s biggest lender would follow moves by its rivals to expand in India, where banks have focused on as a growth market. Sumitomo Mitsui Financial Group ...