MUFG to buy project financing unit of RBS: report

(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.

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

(Reporting by Abhinav Sharma in Bangalore)

MUFG to buy project financing unit of RBS: report