Mitsubishi UFJ Financial Group Inc. said Tuesday it has cancelled parts of the deal to buy the aviation financing business of Germany's DZ Bank AG, a decision that comes as the coronavirus pandemic has hit airlines with demand for air travel plunging.

Photo taken June 7, 2020, shows the headquarters of MUFG Bank in Tokyo.(Kyodo)

Japan's largest financial group by asset said it has failed to obtain regulatory approval in relevant countries to purchase the investment and asset management businesses from a subsidiary of DZ Bank. Meanwhile, it has acquired the lending business for airlines and leasing companies as planned.

MUFG had announced the entire acquisition deal in March last year, expressing hopes to tap into rising global demand for aircraft.

The financial impact of canceling parts of the deal is minor, it said.

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