International Financial Institutions Mizuho and MUFG mull expanding their global reach through strategic acquisitions and partnerships abroad, according to recent reports.

Japanese Banking Giants Mizuho and MUFG Pursue Global Expansion

Two of Japan's largest banking giants, Mizuho and MUFG, are aiming to expand their global investment market footprint through acquisitions and partnerships with overseas money managers.

MUFG Asset Management (MUFG AM), a key division of MUFG, is seeking "attractive non-organic growth opportunities" to expand its business. The London office of MUFG AM serves as its main international hub outside Japan and has seen a more than 50% increase in staff numbers to 39 in just over two years.

Europe holds strategic importance for MUFG AM's global expansion plans, according to MUFG AM head of client relations for London, Duncan Gardiner. He stated that the company's growth in the city has been significant.

Mizuho, on the other hand, seeks a partnership with a private asset specialist in either Europe or the US. Mizuho's AM One London-based head of global distribution strategy, Oleg Kapinos, stated that they are keeping an eye on potential opportunities for partnerships or acquisitions.

Mizuho's international operations are currently limited, with a primary focus on distributing Japanese equities funds. However, the company is interested in establishing a presence in investment domains like credit market and infrastructure financing.

Together, Mizuho and MUFG manage assets totaling approximately $1.3tn, primarily serving a domestic clientele through their asset management divisions. About 20% of MUFG AM's assets under management, totaling 120.7tn yen ($818bn), originate from outside Japan.

Mizuho has considered European or US companies such as BlackRock and UBS as potential partners for coupling with a specialist in private assets. Similarly, MUFG AM views Europe as a crucial starting point for its global ambitions and sees growth opportunities through a distribution arrangement with US bank Morgan Stanley, in which MUFG holds a substantial 23.6% stake.

It's important to note that there is no guarantee that any transactions will materialize for Mizuho and MUFG in their expansion plans. Both companies have not yet commented on whether discussions with potential target companies have begun.

The expansion aims to capture a larger share of the global investing market, with a focus on private assets in Europe and the US. These divisions offer a range of investment products, including both passive and actively managed funds.

As the global investment market continues to evolve, it will be interesting to see how these Japanese banking giants navigate the landscape and establish their presence in the international market.

International Financial Institutions Mizuho and MUFG mull expanding their global reach through strategic acquisitions and partnerships abroad, according to recent reports.