Total transaction value expected to be around $17.6B
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.