CORRECTED – CORRECTED-UPDATE 1-MUFG to buy project financing unit of RBS – N

(Corrects headline to say MUFG to buy unit of RBS, not of RBC)

Nov 3 (BestGrowthStock) – Mitsubishi UFJ Financial Group (8306.T: )
(MTU.N: ), Japan’s biggest bank by assets, is planning to buy the
project financing unit of the Royal Bank of Scotland (RBS.L: )
for about 500 billion yen ($6.21 billion), the Nikkei reported.

The Japanese bank presented a final offer price late last
month to the British government, which controls 84 percent of
RBS’ voting rights, and they expect to sign a deal by year end
and complete it in the first half of 2011, the business daily
said.

RBS’ project financing unit is one of the non-core
operations that the British government has asked the bank to
sell to pay back public funds, the newspaper said.

MUFG is expected to buy RBS’ assets in railroad, energy and
other infrastructure projects, it said.

MUFG is one of Japan’s most active lenders in overseas
expansion with a sizable presence in the United States.

It bought out UnionBanCal Corp, a holding company of
California-based Union Bank, in 2008 and spent $9 billion for a
21 percent stake in Morgan Stanley (MS.N: ) (Read more about the money market today. ) at the height of the
financial crisis. [ID:nTOE68K073]

The Japanese lender aims to become the world leader in
project financing through the latest acquisition, the Nikkei
said.

($1=80.53 YEN)
(Reporting by Abhinav Sharma in Bangalore)

CORRECTED – CORRECTED-UPDATE 1-MUFG to buy project financing unit of RBS – N