MUFG fails in full DVB Aviation takeover
MUFG Bank’s takeover of DVB Bank’s aviation investment management and asset management businesses has failed to gain regulatory approval.
The purchase of the businesses did not succeed in obtaining US Federal Reserve approval on 30 June.
The Japanese lender first disclosed in March 2019 that it planned to acquire DVB’s aviation finance division and transfer it to MUFG Bank and BOT Lease.
The transfer of the €5 billion ($4.75 billion) aviation finance lending business was completed on 18 November, but upon discussion with related parties including regulatory authorities, MUFG tells Airfinance Journal that it had "become clear that it will not be possible to complete the sale of the remaining aviation investment management and aviation asset management elements as originally envisaged.
"MUFG and BOTL are now discussing the handling of the aviation investment management and aviation asset management business going forward with DVB," MUFG adds.
MUFG previously missed a 31 March 2020 deadline to finalise its takeover of the aviation investment management and asset management businesses due to regulatory hurdles, specifically from the USA, sources said at the time.
BOT Lease is an operating lease company owned 22% by MUFG. Its other shareholders include Toyota Tsusho, Mitsubishi UFJ Research and Consulting, Ryobi, Tokyo Credit Services, and Mitsubishi UFJ Trust and Banking.