Japan's MUFG to buy Australian firm for around USD740mn

<p>Mitsubishi UFJ Trust and Banking Corp. will buy Australia's Link Administration Holdings in a deal valued at about AUD1.1bn.</p><p>Mitsubishi UFJ Trust and Banking Corporation is the trust banking arm of the Mitsubishi UFJ Financial Group, a Japanese financial services group that is the largest in the world measured by assets. </p><p>Link Administration Holdings Limited is a provider of outsourced administration services for superannuation fund administration, corporate markets and like businesses. </p><p>-</p><p>While a deal of this size would be expected to have an impact on the AUD/JPY cross do note that by the time such deals become known publicly the forex part (in this case, on the face of it, a buy of AUD/JPY) has already been done/hedged. </p><p>And besides, AUD/JPY has been shunted around much more by speculation regarding the what and when of the upcoming (sometime in 2024 most likely) Bank of Japan pivot to a somewhat tighter policy stance:</p><p>1.1bn AUD/JPY is a sizeable chunk but its pales in comparison to fund flows on speculation over central bank shifts. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.