Sumitomo bought Citigroup Tokyo’s brokerage firm
Friday, May 1st, 2009
Sumitomo Mitsui Financial Group Inc. and Citigroup Inc. said Friday they have reached an agreement in which SMFG will acquire most of Citigroup’s Tokyo brokerage operations effective Oct. 1.
SMFG, Japan’s third largest bank by assets, will buy retail brokerage Nikko Cordial Securities and some operations of wholesale investment bank Nikko Citigroup for about Y545 billion.
Citi also said in a statement that the total cash value of the transaction to Citi would be Y774.5 billion ($7.9 billion).
SMFG’s domestic counterparts have been strengthening their brokerage businesses since the government relaxed firewalls between banks and securities houses – deregulation that the banking industry had long sought.
SMFG also said it has agreed with Citi to form an alliance in corporate and investment banking, including mergers & acquisitions and sales and trading services. – CNN