Japan’s Sumitomo Mitsui Trust Bank has reportedly agreed to buy Citigroup’s credit card business in Japan for at least JPY40bn ($335m).
Sumitomo Mitsui Trust and Citigroup have reached at a general agreement on the deal and aim to make a formal announcement by the end of this month, reports Nikkei Asian Review.
The acquisition aims to boost Sumitomo Mitsui Trust’s s credit card operations as well as strengthen its wealthy individual business.
The credit cards unit, which comprises about 800,000 members, offers the Diners Club and Citi brands.
The sale will allow the Japanese bank to provide Diners Club cards to existing customers or provide asset management services to high-income Diners Club members.
Following the decision to sell the credit card unit, Citi plans to focus on corporate services such as advising companies on acquisitions.