Japan’s Mitsubishi UFJ considers sale of US banking arm – report


A man walks past a Mitsubishi UFJ Financial Group and MUFG Bank sign at its headquarters in Tokyo, Japan, April 3, 2018. REUTERS / Toru Hanai

TOKYO, Sept. 17 (Reuters) – Mitsubishi UFJ (8306.T) is considering selling its U.S. banking arm MUFG Union Bank, Bloomberg reported on Friday, which would mark a significant shift in strategy for Japan’s largest lender.

Mitsubishi UFJ, one of the world’s largest banks in terms of assets, is working with an advisor to explore options for the U.S. subsidiary, Bloomberg reported, citing people familiar with the matter.

A spokesperson for Mitsubishi UFJ said the bank had not commented on the matter.

The Japanese bank has had informal discussions with potential buyers but has not launched a formal auction, Bloomberg said.

MUFG Union Bank had around 300 branches at the end of last year, most of those retail branches on the West Coast of the United States, according to its website.

With assets of $ 132 billion, it provides banking services to businesses, businesses and individuals as well as wealth management.

It became a 100% owned unit by Mitsubishi UFJ in 2008, when the Japanese lender paid around $ 3.5 billion for the third party it did not already control in Union Bank.

At the time, Mitsubishi UFJ said its plan was to strengthen its presence in the United States.

Reporting by David Dolan and Tim Kelly Editing by David Goodman and Alexander Smith

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