Sumitomo Mitsui Financial Group Inc. plans to acquire banks in emerging Asia with its US$12 billion in surplus capital, Reuters reported Dec. 25, citing President and CEO Takeshi Kunibe.
The Japanese financial group is looking to offer full banking services, including retail banking services, Kunibe told the newswire, adding that Sumitomo Mitsui is unlikely to establish retail banking operations from scratch, so the company is likely to acquire local banks in the region.
Sumitomo Mitsui recently obtained approval from Indonesia's Financial Services Authority to merge PT Bank Tabungan Pensiunan Nasional Tbk with local unit PT Bank Sumitomo Mitsui Indonesia.
In the meantime, while Sumitomo Mitsui would benefit strategically from purchasing a U.S. bank, such an acquisition is not a priority for the company as deal prices would be too high, Kunibe said.
Moreover, the Japanese company is also considering acquisitions in other segments such as asset management and investment banking, with boutique M&A advisory firms as potential target companies, Reuters said.