Mizuho, MUFG join race by Japan’s banks for money manager deals overseas

By iain withers and anton bridge

They told Reuters, where they target Reuters, Reuters, joined other Japanese financial companies aimed at obtaining a greater share of the global investment market.

A CEO told Reuters that Mezoho gives priority to linking a special assets specialist in Europe or the United States to give her foothold in areas such as a booming credit market or infrastructure financing.

The company said that MUFG, at the same time, has identified the administration of external assets – especially in the United States and Europe – as a priority field for potential deals.

Banks, which are larger than the largest in Japan, are running about 1.3 trillion dollars through asset management weapons, to a large extent for local customers. They refused to comment on whether discussions with targeted companies have already conducted and certainty will not occur.

The largest financial groups in Japan have become more acquired abroad because they conflict with slow growth at home due to the aging of the fluctuating population.

The government and organizers are also following reforms aimed at establishing Japan as a leading center in asset management, with relatively proven income from money management that prove a major sale point.

Nomura acquired the US and European General Assembly management companies for the Macquarie Group for $ 1.8 billion in April. The insurance companies also gained Dai-Yichi Life and Meiji Yasuda or have obtained stakes in foreign companies this year.

The investment departments in Mizuho and MUFG – which offer a mixture of negative and active money – currently have limited international operations that focus mainly on the distribution of Japanese stock funds.

“We are sure to monitor any possible opportunities … it may be a partnership, and it may be a acquisition, there is nothing determined as of this point,” said Oleg Kabinos, head of the Global Distribution Strategy for Mezzoho Investments, which runs about $ 489 billion.

Join the battle in private markets

Japanese companies may face challenges in implementing successful deals in the investment industry, which have witnessed many acquisitions. There is also fierce competition for precious assets in hot sectors like private markets, where deep giants like Blackrock are active.

“The purchase chances are somewhat rare, and when there is an attractive balance, it may attract a lot of attention,” Cabinos said.

A spokeswoman said MUFG Management Management (MUFG AM) is looking for “attractive inorganic growth opportunities” besides growth in the first place. The company said that the fifth out of 120.7 trillion yen (818 billion dollars) of management assets from outside Japan.

Denkan Garderner, head of the client’s client relations at MUFG AM in London, said that the company has grown its city – its main international base outside Japan – by more than half to 39 in a little more than two years.

“When we look forward to becoming a more global company, Europe is a very important starting point for us,” Garderner said, adding that it also aims to grow through the arrangement of distribution with the American Bank Morgan Stanley – where MUFG has 23.6 %.

($ 1 = 147.5600 yen)

(Participated in the reports of Ian Withers in London and Anton Bridge in Tokyo; edited by Tommy Regeyry Wilkes and Emilia Citol-Matis)