(by Sh.Nakata)

A global banking group HSBC took out from the battle for the $10bn Japanese consumer finance company Takefuji that dwindles down its intention to get share of the country’s lucrative consumer lending market.

The bank is still interested in acquiring Aplus, a smaller Japanese consumer finance company competing in it with Shinsei, the Japanese bank owned by US private equity company Ripplewood.

HSBC was captured to Japan’s consumer lending industry by its wide margins having interest rates of more than 29.2 per cent and a cost of capital of about 3 per cent. Analysts suggest that it turned away from Takefuji because of the huge $7bn price tag it would have had to pay to acquire the 67 per cent stake needed to gain control.

HSBC was interested in Japan’s consumer lending market to acquire three Japanese consumer lenders. Mizuho, SMFG, MTFG and UFJ also expand their consumer lending sides.

HSBC’s withdrawal from Takefuji and its probable breakdown to gain control of Aplus will surely reduce bank’s ambitions to acquire Japanese consumer lenders.