Reuters logo
UPDATE 1-Sumitomo Trust to buy Citi's Nikko Asset - Nikkei
July 29, 2009 / 5:53 AM / 8 years ago

UPDATE 1-Sumitomo Trust to buy Citi's Nikko Asset - Nikkei

* Japan No.5 bank to buy Citi asset firm for $1.1 bln -paper

* Sumitomo Trust may sell stake in Nikko Asset to SMFG -paper

* Sumitomo Trust will also consider IPO of unit -paper

TOKYO, July 29 (Reuters) - Sumitomo Trust and Banking Co 8403.T has agreed to buy Citigroup’s (C.N) Japanese asset manager, Nikko Asset Management, for about 100 billion yen ($1.1 billion) the Nikkei newspaper said on Wednesday.

Sumitomo Trust, Japan’s fifth-largest bank, is likely to make the acquisition by October, the paper said, without identifying its sources.

Acquiring Nikko Asset’s roughly 9 trillion yen in assets under management would make Sumitomo Trust Japan’s top asset manager with a total of about 35 trillion yen, the Nikkei said.

Nikko Asset is Japan’s third-largest mutual fund manager, and is well known to both institutional and retail investors.

Spokesmen for both Nikko Asset and Sumitomo Trust declined to comment, as did a Hong Kong-based spokesman for Citigroup.

Sumitomo Trust may consider selling a stake in Nikko Asset to Sumitomo Mitsui Financial Group (8316.T), Japan’s third-largest bank, the paper said.

Sumitomo Mitsui recently acquired Citigroup’s Japanese retail brokerage, Nikko Cordial. [ID:nBNG446757]

Sumitomo Trust will also consider taking Nikko Asset public, the paper said.

Citigroup has been selling off its assets in the world’s second-largest economy after taking $45 billion in U.S. government money following the credit crisis. (Reporting by David Dolan; Editing by Edwina Gibbs)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below