MUFG to acquire robo-adviser WealthNavi for $665M

Mitsubishi UFJ Financial Group (NYSE:MUFG), Japan's largest bank, announced plans on Friday to acquire Japanese robo-adviser WealthNavi for up to ¥99.7 billion ($665 million), marking a strategic move to bolster its financial technology capabilities and target the growing wave of households investing online.

The acquisition will be carried out through a tender offer of ¥1,950 per share, a substantial 84% premium over WealthNavi's closing price on Thursday.

Upon completion, WealthNavi will become a wholly owned subsidiary of MUFG.

This latest move follows MUFG's earlier investment in WealthNavi, having purchased a 15% stake in the fintech firm earlier this year.

The acquisition signals MUFG's growing focus on fintech as the bank aims to capitalize on Japan's increasingly digital investment landscape.

WealthNavi, which debuted on the Tokyo Stock Exchange in 2020, had a market capitalization of ¥62.8 billion before news of the acquisition deal broke.

The announcement saw WealthNavi’s shares surge 28% to ¥1,358 in Tokyo on Friday — the biggest jump in nearly four years.

Despite the strong rally, WealthNavi's stock is still down 30% for the year.

MUFG, on the other hand, saw a modest increase in its stock price, rising 1.3%, extending its year-to-date gain to 48%.

The deal reflects the growing demand for digital wealth management services in Japan, as more consumers turn to online platforms to manage and grow their savings.