Mitsubishi UFJ unit to buy Citigroup body | india | Hindustan Times
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Mitsubishi UFJ unit to buy Citigroup body

india Updated: Dec 16, 2008 14:58 IST

A unit of Japanese mega bank Mitsubishi UFJ Financial Group said on Tuesday it will buy a trust banking body of embattled Citigroup for 25 billion yen (277 million dollars).

Mitsubishi UFJ Trust and Banking will purchase all outstanding shares of NikkoCiti Trust and Banking around April 1, pending regulatory approval, it said in a statement.

Mitsubishi will also keep the 136 workers of NikkoCiti Trust, an official said.

"By taking the entire stake in NikkoCiti Trust and Banking, Mitsubishi UFJ Trust and Banking shall further expand and strengthen its customer base," Mitsubishi said in a statement.

Citigroup has been hit hard in the global financial crisis. The US government stepped in last month to guarantee more than 300 billion dollars in potential losses at Citigroup and pump 20 billion more into it.

Citigroup's reorganisation amid the global financial crisis has already hit Japan.

Nikko Cordial Securities, a major Japanese securities house also under the umbrella of Citigroup, has decided to trim jobs through early retirements schemes.