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Mitsubishi UFJ Securities (Tokyo: 8615) the securities arm of Mitsubishi UFJ Financial Group (NYSE:MTU) has signed an MOU with ICICI Bank (NYSE:IBN), India's second largest bank. Separately, Russia's daily Kommersant reports the Russian central bank has issued a banking license to Mitsubishi UFJ Bank. And some legal news follows directly below that could possibly lead to a buying opportunity.

First, Mitsubishi UFJ Financial Group's ordinary shares (Tokyo: 8306) lost 2.47% today to close at 1.58 million yen ($13.51 ADR equivalent). Although the overall market was down I believe news that Sumitomo Trust & Banking (Tokyo: 8403) will seek damages of 14.7 billion yen ($126m) from Mitsubishi UFJ prompted selling. Sumitomo announced its intention in the second round of oral proceedings in an appeal case regarding its failed attempt to merge with UFJ Group in which the latter merged with Mitsubishi Tokyo instead (now Mitsubishi UFJ).

I am waiting for more news and analyst comments on the Sumitomo appeal request for damages. At this time I don't think the court will overturn and if it were to I don't think it warrants a sell-off since Mitsubishi UFJ forecasts full-year net income of 750 billion yen ($6.4 billion).

Next, a statement by Mitsubishi regarding its MOU with ICICI can be read here (pdf format).

M&A seems to be the main target between Mitsubishi and ICICI, as well as pursuing opportunities in corporate finance and asset management. A Japanese language article by the Nikkei Shimbun points out the improving quality of Indian companies and the rapid growth of the Indian economy as important factors behind a partnership. Not to mention the Group's bank already does business in India and would have a role in the partnership. As of last September Mitsubishi UFJ Financial Group owned 61.2% of Mitsubishi UFJ Securities.

Lastly, Russia's reports the nation's central bank has issued a banking license to Mitsubishi UFJ. ZAO Bank of Tokyo-Mitsubishi, its wholly-owned subsidiary is the actual recipient and the first among Japan's three mega banks to enter Russia. It is believed the bank will focus on corporate clients -- likely providing services to Japanese companies doing business in Russia -- and investments before expanding into retail.

Recommended reading:

Bigger Dividend Payout on the Horizon at Mitsubishi UFJ (Aug. 23rd -- see the links at the end of the article for more on MTU)

Mitsubishi UFJ Financial Group (MTU) 1-year chart:

Source: Mitsubishi UFJ to Expand in India, Receives License in Russia