Citigroup to sell Japan retail bank unit to SMBC
The deal includes 740,000 customer accounts and about 21 billion dollar worth of yen and foreign currency accounts
Tokyo: Citigroup Inc. has agreed to sell its retail banking business in Japan to Sumitomo Mitsui Banking Corp.
Citigroup said in a statement on Thursday that the two sides have reached an agreement on selling Citibank Japan’s retail branches and ATMs to a trust bank subsidiary of SMBC. The deal includes 740,000 customer accounts and about ¥2.5 trillion (about $21 billion) worth of yen and foreign currency accounts.
It is said that about 1,600 Citibank Japan employees in Japan will also be transferred to SMBC, one of the three Japanese mega-banks.
Citigroup did not give a total value for the deal, which will close in late 2015. The company is also considering selling its credit card business in Japan, separately, as it streamlines its global banking and focuses on corporate and investment banking, and other services.
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