Mitsubishi UFJ Financial Group is engaged in advanced negotiations to acquire approximately 20% stake in Shriram Finance for around $2.6 billion, according to unnamed sources familiar with the matter. The parties have signed an exclusivity agreement regarding the negotiations. Mitsubishi UFJ's investment would be conducted through a primary issuance via preferential rights offering, with no secondary stock sales involved. Over time, MUFG does not oppose increasing its shareholding in Shriram Finance or even acquiring controlling interest. Neither MUFG nor Shriram Finance responded to inquiries for comment.