Mitsubishi UFJ Trust and Banking, a subsidiary of Mitsubishi UFJ Financial Group, has announced a significant acquisition in the asset management sector. The Japanese financial giant is set to acquire Australian asset manager Link Administration Holdings, marking a major expansion of its global business strategy, particularly in the asset management and investor service arena.
The deal, valued at 1.11 billion Australian dollars (approximately $745 million), involves the purchase of all outstanding shares in Link Administration Holdings. Slated for completion in June 2024 or later, the acquisition is subject to customary corporate procedures under Australian law, including approval by Link Administration’s shareholders and relevant court processes. The agreed purchase price per share stands at AU$2.10, representing a 20% premium over recent share values.
Link Administration Holdings is a major player in the Australian pension services industry, managing approximately 10 million accounts. This accounts for about 40% of the country’s pension fund subscribers, making it the leader in Australia’s pension operation and management sector. Additionally, the company provides stock administration services, such as shareholder registries, primarily in Australia, the U.K., and India.
This acquisition is part of Mitsubishi UFJ Financial Group’s broader strategy to bolster its asset management portfolio globally. Previously, the group had acquired a fund management business from the Swiss financial company UBS, among other international expansions.
The strategic move by Mitsubishi UFJ Trust to acquire Link Administration Holdings not only strengthens its presence in the global asset management industry but also reinforces its position in the increasingly competitive financial services sector. The acquisition underscores the company’s commitment to diversifying its offerings and expanding its market footprint beyond traditional banking services.
