UPDATE:Nomura Holdings Likely To Buy NikkoCiti Trust -Source
2009年7月1日 - 1:30PM
Dow Jones News
Nomura Holdings Inc. (8604.TO) is in final talks to buy
Citigroup Inc.'s (C) Japanese trust banking unit for about Y20
billion, a person familiar with the transaction said Wednesday.
The acquisition by Nomura Trust and Banking Co., a unit of
Japan's largest brokerage by assets, is likely to be announced
later today, the person said.
Buoyed by a high savings rate and prudent credit system,
Japanese megabanks and brokerages have been cherry-picking U.S.
financial assets to boost their market reach in the face of a
shrinking domestic base.
Mitsubishi UFJ Trust & Banking Corp. had already attempted
to buy the unit for Y25 billion, or around $260 million, in May,
but the deal fell apart after it failed to buy Nikko Cordial,
Citigroup's Japanese brokerage operations.
Citigroup agreed to sell Nikko Cordial Securities and part of
Nikko Citigroup to Sumitomo Mitsui Financial Group (8316.TO),
Japan's third-biggest bank by assets, for $5.6 billion.
The U.S.-based financial services group, which has received $50
billion in U.S. government aid, started the sales process of
NikkoCiti trust last December as part of its restructuring
efforts.
Citigroup is offloading other Japanese assets such as Nikko
Asset Management, with Sumitomo Trust emerging as the likely buyer
for around Y100 billion. It is also reportedly selling call service
center Bellsystem24, currently owned by Nikko Principal Investments
Japan, Citigroup's private equity arm, valued at around $1.5
billion.
Japanese financial service industry players have already been
active in picking up cheap assets where they can.
As the credit crisis was unfolding last September, Nomura bought
Lehman's Asian, European and Middle Eastern assets. Mitsubishi UFJ
Financial Group also made a $9 billion investment in Morgan Stanley
and just announced details of its joint venture with the U.S. firm
that will extend MUFG's overseas corporate financial services
leveraging Morgan Stanley's international network.
Merger and acquisition activity in the domestic banking sector
is also on the boil, with beleaguered Shinsei Bank and Aozora Bank
scheduled to announce their merger later Wednesday.
-By Tor Ching Li, Dow Jones Newswires; 813-6895-7567,
chingli.tor@dowjones.com