Japanese banking major Mitsubishi UFJ Financial Group (MUFG) is reportedly in advanced talks to acquire around 20% stake in Shriram Finance Ltd , India’s largest retail non-banking financial company (NBFC), according to a Moneycontrol report citing sources familiar with the matter.

The potential deal, estimated to be valued at about $4 billion, would mark one of the largest foreign investments in India’s NBFC sector. MUFG is expected to secure board representation as part of the agreement, the report said.

Shriram Finance , formed after the merger of Shriram Transport Finance and Shriram City Union Finance in 2022, has a strong presence in vehicle loans and small business financing. The company is backed by marquee investors such as TPG Capital and Premji Invest.

The transaction, if

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