Mitsubishi UFJ to sell part of American unit to US Bancorp

22-Sep-2021 Intellasia | Kyodo-Bloomberg | 7:07 AM Print This Post

Mitsubishi UFJ Financial Group Inc. plans to sell part of its American banking unit MUFG Union Bank to US Bancorp in a deal expected to be worth over JPY 1 trillion ($9.12 billion), sources familiar with the matter said Tuesday.

The Japanese financial group will acquire MUFG Union Bank’s operations for corporate customers and then sell all the shares to US Bancorp, the sources said.

MUFG Union Bank has about 300 branches and more than $16 billion in equity capital, or book value, according to data from the Federal Deposit Insurance Corp. US banks have sold at a median 1.4 times book value this year, according to data compiled by Bloomberg.

The potential sale comes as US regional banks increasingly seek to pair up to to better compete with industry giants such as JPMorgan Chase & Co. and upstart fintech lenders. A hot market for bank deals has also spurred some foreign players in the US to consider exiting the country.

https://www.japantimes.co.jp/news/2021/09/21/business/corporate-business/mitsubishi-ufj-sale-to-bancorp/

 

Category: Japan

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