MUFG to delay purchase of Citi Japan trust bank-media

TOKYO, March 25 (Reuters) - Mitsubishi UFJ Financial Group (8306.T) will delay its planned acquisition of Citigroup's (C.N) Japanese trust bank, as it takes a closer look at the trust bank's exposure to a failed lender, the Mainichi newspaper reported on Wednesday.

Mitsubishi UFJ Trust & Banking, an arm of MUFG, Japan's largest bank, said in December it would buy NikkoCiti Trust & Banking for about 25 billion yen ($255 million). [ID:nT290822]

The Mainichi said Mitsubishi UFJ has decided to put off the acquisition, scheduled for April 1, as NikkoCiti Trust may have to shoulder some costs owed by failed lender SFCG 8597.T.

SFCG said on Tuesday it had given up efforts to revive its business and would close down. [ID:nT248826]

NikkoCiti Trust has made several tens of billions of yen in loans to the money lender, the Mainichi said, without citing sources. ($1=97.91 Yen) (Reporting by Taiga Uranaka; Editing by Chris Gallagher)