Mitsubishi UFJ Financial Group Inc is currently seeking means to acquire controlling stake of Thailand's largest bank which is Bank of Ayudhya PCL. A plan for a tender offer is set later this year.

Talks are well underway between Mitsubishi UFJ and its shareholders regarding the potential acquisition. General Electric Co, owner of 25% of the lender, is set to decide on the terms for the deal.

The Bank of Ayudhya acquisition would give Mitsubishi UFJ at least 50% stake in the banking institution which is valued around $3.6 billion. Upon the purchase, Mitsubishi UFJ will have a bigger foothold when it comes to expansion of retail and corporate banking in Southeast Asia. Large banking institutions are following suit when it comes to buying assets as they see the potential in the fast growing market versus the shrinking loan profitability that is experienced from home base.

Depending on approval, the offer could be made by September, sources said. Mitsubishi UFJ is actively seeking an alliance with the Ratanarak Family, owners of 25% of the stakes for Bank of Ayudhya, once the deal is set.