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Business deals

Sumitomo Mitsui leasing unit to buy real estate fund Kenedix

Price expected to top $960m as consolidation in industry accelerates

Sumitomo Mitsui Finance and Leasing will buy a majority stake in Kenedix as it seeks to expand its nonfinancial business.

TOKYO -- Japan's Sumitomo Mitsui Finance and Leasing is set to buy Kenedix, a real estate investment fund, by purchasing a majority stake through a tender offer, Nikkei has learned.

Sumitomo Mitsui is expected to spend around 100 billion yen ($963 million) to acquire Kenedix and hopes to accelerate growth in nonfinancial areas by expanding its real estate business.

The deal is expected to be announced later Friday. When the tender offer is completed, Kenedix will be delisted. DBS Bank, a major shareholder in Singapore, is expected to retain a stake even after the delisting.

Mitsubishi UFJ Lease & Finance and Hitachi Capital decided to merge in September, highlighting the accelerating consolidation in Japan's leasing industry.

Kenedix fund has about 2.5 trillion yen under management and is one of the largest such funds in the country.

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