Ovunc Kutlu
21 September 2021•Update: 21 September 2021
ANKARA
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.
