MUFG Bank, Japan's largest lender, is actively seeking financing partners to share the risk associated with large corporate deals, particularly leveraged buyouts. CEO Masakazu Osawa stated the bank aims to avoid bearing the full risk on its balance sheet for deals, which can run into trillions of yen.
"The more diversified the sources of funding the better," Osawa commented. This strategy involves structuring deals to include equity finance and jointly taking on risk, a necessity to attract clients for major M&A activities. Potential partners include life and non-life insurers, government entities, and private credit funds.
This move comes as M&A activity involving Japanese companies doubled last year to a record 53 trillion yen. Despite global economic uncertainties, MUFG Bank's base case anticipates a relatively strong global economy, though potential setbacks from geopolitical factors are being monitored.