UPDATE 1-Japan’s MUFG seeks new acquisition in U.S.

* Seeking new acquisition in U.S. to boost presence

* Japanese lenders are stepping up expansion overseas

* Shares flat, in line with the broader market
(Recasts, adds background)

TOKYO, July 21 (BestGrowthStock) – Mitsubishi UFJ Financial Group
(8306.T: ), Japan’s biggest bank by assets, said it is looking for
a new acquisition target in the United States as part of a
broader push into overseas markets.

MUFG spokesman Hirokazu Ushio said the bank is studying
possible acquisitions in the United States, confirming a Dow
Jones report that quoted a senior bank executive.

MUFG and its rivals Mizuho Financial Group (8411.T: ) and
Sumitomo Mitsui Financial Group (8316.T: ) have been stepping up
their overseas expansion in the face of weak growth prospects at
home.

MUFG sees a midsize bank on the West Coast or in Texas or
Arizona as an ideal target although it is also thinking about
buying several small banks, Dow Jones newswire quoted Tatsuo
Tanaka, group chief executive officer of global banking at the
firm’s core banking unit as saying.

Tanaka also said it aims to become one of the 10 leading
commercial banks in the United States, Dow Jones said.

MUFG is one of the most active Japanese lenders in overseas
expansion, buying out UnionBanCal Corp, a holding company of
California-based Union Bank in 2008 and spending $9 billion to
buy a 21 percent stake in Morgan Stanley (MS.N: ) (Read more about the money market today. ) at the height of
the financial crisis.

In April this year, MUFG bought two small failed banks
through Union Bank under an agreement with the U.S. Federal
Deposit Insurance Corp.

MUFG’s core banking unit, the Bank of Tokyo-Mitsubishi UFJ
has said it aims to increase profits from international
operations to 40 percent of its total from 30 percent currently.

MUFG and its rivals are finding it difficult to increase
revenue in Japan, where loan demand remains sluggish and interest
rates are near zero.

MUFG shares were flat at 399 yen, in line with the broader
market.

Stock Market News

(Reporting by Sachi Izumi and Taiga Uranaka; Editing by Edwina
Gibbs)

UPDATE 1-Japan’s MUFG seeks new acquisition in U.S.