Mitsubishi UFJ Financial Group Inc. and Hitachi Ltd. said Friday they will form a capital and business alliance in financial services, with an eye to integrating their leasing companies in the future.

Japan's largest lender hopes the alliance will help expand business in the area of financing infrastructure development because Hitachi has been actively involved in rail, electric power and other projects both at home and abroad. Hitachi is also aiming to streamline its operations under the alliance.

MUFG and Mitsubishi UFJ Lease & Finance Co. will buy from Hitachi a combined 27.2 percent of the outstanding shares in leasing subsidiary Hitachi Capital Corp. for ¥108.1 billion ($994 million). The shares carry voting rights.

Hitachi will continue to own 33.4 percent of the subsidiary, while Hitachi Capital plans to purchase a 3 percent stake in Mitsubishi UFJ Lease from the open market.

The two groups said in news releases that their leasing firms will discuss ways to strengthen ties and study business integration as an option.