Hitachi Capital, Mitsubishi UFJ Enter into Business Alliance

Hitachi Capital and Mitsubishi UFJ Financial Group entered into a business alliance to boost their operations by constructing an open platform pertaining to the field of infrastructure business. The deal is likely to close in August 2016.

Mitsubishi UFJ and its unit Mitsubishi UFJ Lease & Finance Company Limited are set to acquire 23% and 4.2% of Hitachi Capital from parent Hitachi, respectively. Hitachi Capital separately revealed that it will purchase 3% of Mitsubishi UFJ Lease & Finance.

Mitsubishi UFJ’s latest move comes in line with its focus on financing deals in several areas of infrastructure development including electric power and railroads, given its experience in global project finance.

Notably, last month the company established Infrastructure Business Office in order to strengthen social infrastructure business worldwide through its expertise and know how gained from business model evolution.

In its news release, Hitachi Capital said the business alliance calls for the construction of an open platform pertaining to the field of infrastructure business and will proceed with specific consultations.

In its release, Mitsubishi UFJ highlighted the competitive environment in the global infrastructure market with respect to order placement amid persistent scale expansion. While large-scale and long-term infrastructure projects with a financing wing as a tie-up are gaining influence, it has become difficult for manufacturers seeking financial assistance to tap such business opportunities.

Being major players in the social infrastructure space, the alliance of Mitsubishi UFJ and Hitachi seeks to build a financial platform to offer support to the infrastructure industry.

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