Product details

The case study gives a detailed account of the attempts made by Sumitomo Mitsui Financial Group (SMFG), Japan''s third largest bank, to acquire UFJ Holdings (UFJ), the fourth largest bank in Japan. The Japanese banking industry has witnessed several major mergers and acquisitions in the past ten years. Though unsuccessful, SMFG''s aggressive bid to acquire UFJ marked a new beginning in the tradition- bound Japanese corporate world. Finally, Japan''s second largest bank, Mitsubishi Tokyo Financial Group (MTFG) merged with UFJ, to form the largest bank in the world in terms of assets. The case also includes a detailed note on the Japanese banking industry describing the financial problems faced by the Japanese banks in the recent past and the ongoing consolidation in the industry. The case is structured to encourage students to: (1) gain insights on the banking industry in Japan; (2) examine the reasons that led UFJ into financial problems and identify ways to solve them; (3) explore the reasons that led SMFG to make attempts to acquire UFJ; (4) critically examine the merger proposals of both SMFG and MTFG to acquire UFJ and draw suitable conclusions; (5) study the takeover regulations in Japan; (6) analyse the synergies of the merger between MTFG and UFJ; and (7) examine the drawbacks of the merger between MTFG and UFJ. The case is aimed at MBA/PGDBA students as part of the strategy and general management curriculum.