TOKYO -- Mitsubishi UFJ Lease & Finance and Hitachi Capital will start a leasing business in Mexico as soon as next fiscal year, hoping to capture demand from the country's growing automotive industry.
The pair, which are expected to sign a deal Wednesday, will set up a Mexican company or office to lease equipment to Japanese automakers and parts suppliers. Envisioned transactions include so-called leaseback arrangements -- in which an owner sells equipment and then leases it from the new owner. The partners also will work with truck dealers and lease the vehicles, or offer loans to companies seeking to purchase trucks.
The two units in May announced a capital and business partnership involving financial services, and they are discussing specifics with management consolidation in mind. Their collaboration also will cover renewable energy such as solar, wind and biomass power. The partners are to establish a fund of tens of billions of yen (10 billion yen equals $99 million) to acquire and resell power generation businesses. Another area of joint operations will be real estate, ranging from public facilities and urban infrastructure to commercial and logistics sites.
The partners seek to reap synergies of around 400 billion yen from these various areas of cooperation.
Hitachi will transfer 27.2% of Hitachi Capital shares to Mitsubishi UFJ Financial Group for about 110 billion yen as soon as October. Hitachi Capital will obtain 3% of Mitsubishi UFJ Lease shares through the market.