The ]tag|Bank of Tokyo-Mitsubishi UFJ">Bank of Tokyo-Mitsubishi UFJ has signed a conditional branch purchase agreement with Thailand's Bank Ayudhya, ahead of the former's planned acquisition of the latter.

Krungsi, as Bank Ayudhya Public Company is also known, has been in talks with BTMU since 2 July 2013 when the Japanese bank said it was interested in buying Krungsi shares and eventually integrating the BTMU Bangkok branch into it. On 27 August, BTMU and Krungsi obtained approval from the Bank of Thailand, allowing the acquisition of Krungsi shares in excess of the foreign shareholding limit. 

Under the conditional branch purchase agreement, BTMU will integrate its Bangkok branch with Krungsi in exchange for some 1.14 billion common shares at THB39 per share. The deal covers a maximum of 1.5 billion shares. 

The BTMU Bangkok branch is one of the largest foreign banks operating in Thailand in terms of assets. As at March 2013, the company records THB583.4 billion ($18.8 billion) in total assets.

Krungsi shareholders will meet on 31 October to approve the deal.