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Citigroup to sell Japanese trust banking unit for $277.6 mn

Citigroup to sell Japanese trust banking unit for $277.6 mn
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First Published: Tue, Dec 16 2008. 04 29 PM IST
Updated: Tue, Dec 16 2008. 04 29 PM IST
AP
Tokyo: Citigroup Inc., as part of a global restructuring, will sell its Japanese trust banking unit to Mitsubishi UFJ Trust and Banking Corp., the US firm’s Japanese subsidiary said on Tuesday.
The all-cash deal, valued at $277.6 million, is expected to close around 1 April, Nikko Citi Holdings Inc. said.
The decision by Citigroup to unload NikkoCiti Trust and Banking Corp. comes as the ailing US banking giant struggles to survive the global financial crisis. The New York-based bank averted the collapse in November after Washington extended a last-minute lifeline worth $20 billion.
Since then, Citigroup has said it plans to cut about 50,000 jobs worldwide, on top of 22,000 cuts previously announced. It sold off its German retail banking unit earlier in December.
All current staff at NikkoCiti Trust and Banking will keep their jobs under new ownership, Nikko Citi said. The trust bank employed 136 people as of 30 September.
“In addition, the parties have agreed to seek opportunities to cooperate both in Japan and across the global that will leverage MUTB’s core strength in Japan and Citi’s global expertise and footprint in transaction services,” Nikko Citi in a statement.
NikkoCiti Trust and Banking was established in 1993 as Nikko Trust Banking Corp. but was renamed in 2001 after Citigroup took over.
Mitsubishi UFJ Trust and Banking is a wholly-owned unit of Japan’s top banking group, Mitsubishi UFJ Financial Group Inc., with $310.9 billion in managed assets.
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First Published: Tue, Dec 16 2008. 04 29 PM IST