Mitsubishi UFJ Financial Group is studying ways to eventually gain majority control of Shriram Finance, in a deal that would mark the largest foreign investment in India’s financial sector if it goes ahead, people familiar with the matter have said. Japan’s largest bank is in the early stages of considering the idea of increasing its stake in India’s financial conglomerate Shriram to more than 50% from about 20% now, the people said, asking not to be named because the discussions are private. It may need to inject more than $10 billion into Shriram to gain control, according to the people.
While MUFG wants to work toward the ultimate goal of gaining control of the company, it hasn’t set a firm timeline for a potential deal, some of the people said. Deliberations are still at an early stage and details of the possible transaction could still change, according to the people.
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