Sumitomo Life close to acquiring 18% stake in Vietnamese Bao Viet from HSBC

Japanese insurer Sumitomo Life Insurance Company is nearing an agreement to buy  an 18% stake in Vietnamese financial services group  BaoViet Holdings from British banking giant HSBC (LON:HSBA), Reuters reported citing a knowledgeable source.

According to the person, Sumitomo Life is to pay the UK-based lender some JPY30bn (USD357m/EUR270m) for the interest. The parties are likely to shake on the deal before the week is over, the source added.

Reuters went on to say that Sumitomo Life was doing what many domestic rivals had undertaken, which is to look for opportunities to sustain growth through investment abroad. Such moves are designed to counter the impact of an aging population and a weak economy at home.

The news agency was unable to extract comments from a Sumitomo Life spokesman.