Sumitomo Mitsui, Citi sign deal
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The Associated Press
Oluşturulma Tarihi: Mayıs 02, 2009 00:00
TOKYO - Sumitomo Mitsui is taking over Citigroup's Japan brokerage businesses, both sides said Friday, as part of a plan to restructure the struggling U.S. bank.
Details of the deal were to be announced at a news conference later in the day, they said in a statement. Japanese media reports have speculated the deal for Sumitomo Mitsui Financial Group Inc. to acquire Nikko Cordial Securities Inc. from Citigroup for about 500 billion yen ($5.2 billion).
The much-expected move, which also includes the purchase of most of Nikko Citigroup's securities operations, is part of the ailing U.S. bank's global restructuring. Citigroup has said it is looking into selling its Japan brokerage operations. The deal makes Sumitomo Mitsui the first Japanese bank to buy a top brokerage in Japan. Two other of Japan's "megabanks" - Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. - had also been wooing Nikko Cordial. But they lost out in the end.
Nikko Cordial, which Citigroup acquired just a year ago, is Japan's third-largest brokerage with managed assets of 25 billion yen ($260.4 million) and 111 branches. Sumitomo Mitsui can hope to expand its brokerage operations by acquiring Nikko Cordial, which operates in both individual and corporate sectors in Japan. The acquisition will allow Sumitomo Mitsui to come close in size to the nation's industry leader Nomura Holdings. After reporting a quarterly loss of $8.29 billion, Citigroup last month reorganized into two entities, Citicorp and Citi Holdings.
The much-expected move, which also includes the purchase of most of Nikko Citigroup's securities operations, is part of the ailing U.S. bank's global restructuring. Citigroup has said it is looking into selling its Japan brokerage operations. The deal makes Sumitomo Mitsui the first Japanese bank to buy a top brokerage in Japan. Two other of Japan's "megabanks" - Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. - had also been wooing Nikko Cordial. But they lost out in the end.
Nikko Cordial, which Citigroup acquired just a year ago, is Japan's third-largest brokerage with managed assets of 25 billion yen ($260.4 million) and 111 branches. Sumitomo Mitsui can hope to expand its brokerage operations by acquiring Nikko Cordial, which operates in both individual and corporate sectors in Japan. The acquisition will allow Sumitomo Mitsui to come close in size to the nation's industry leader Nomura Holdings. After reporting a quarterly loss of $8.29 billion, Citigroup last month reorganized into two entities, Citicorp and Citi Holdings.