Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has agreed to acquire the Japanese retail banking arm of Citigroup in October 2015.
Following the acquisition, Citibank Japan’s retail banking operations with 32 branches, 1,600 employees, 740,000 retail customers, and JPY 2.44trn ($20bn) in deposits will be transferred to SMBC’s private banking subsidiary SMBC Trust Bank.
Citibank Japan customers will be allowed to have access to Citi’s global ATM network for at least two years after the acquisition by SMBC.
Commenting on the move, Citibank Japan CEO Peter Eliot said: "This decision furthers Citi’s global strategy of focusing our resources where we feel we have a competitive advantage, which includes our Institutional Clients Group businesses in Japan."
The deal value has not been disclosed, though Reuters has learned from sources that SMBC has purchased the unit at a value of JPY40bn (about $333m).
The deal is slated to be completed by end of next year, subject to regulatory approvals and other customary closing conditions.
Citigroup also said that it is mulling sale of its credit card business in Japan.