Japan's largest financial group to sell American banking unit to US

By Ovunc Kutlu

ANKARA (AA) - Mitsubishi UFJ Financial Group (MUFG), Japan's largest financial group​​​​​​​, announced Tuesday that it will sell its North American unit, MUFG Union Bank, to American bank holding company US Bancorp.

As a result of the transfer of all the unit's shares, MUFG will receive 2.9% of Bancorp's outstanding shares, in addition to cash.

MUFG, which is the world's second-largest bank holding company, said Bancorp will be the fifth-largest bank in the US by assets after share transfer.

The North American unit has a capital of $604 million, according to the statement.

Its retail and commercial banking businesses have assets of approximately $105.4 billion, and loans of around $57.7 billion, it added.

The total transaction value is expected to be approximately $17.6 billion, said the statement.

The amount is composed of some $8 billion of consideration paid by Bancorp for the share transfer and around $9.6 billion of expected dividend or share repurchase by the North American unit prior to the completion of the transfer, it noted.