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MUFG trades in Union Bank for $7.3bINTL

MUFG trades in Union Bank for $7.3b

Mitsubishi UFJ Financial Group, aka MUFG, has had enough of the US as it’s selling its subsidiary in the country to US Bancorp (USB). MUFG is a Japanese bank holding and financial services company, and its latest transaction comes after it sold off its US debt-service and securities portfolio last year to Bancorp as well.

MUFG’s US subsidiary, Union Bank, is an American retail bank with branches mainly across California and Washington, and it’s set to be sold off in a cash-and-stock deal. The transaction will involve $5.5b in cash and $2.5b worth of US Bancorp shares, giving MUFG a 2.9% stake in Bancorp. US Bancorp is the 5th largest retail bank in the country and with MUFG’s subsidiary on board, its assets are expected to grow by $664b in size.

why it matters

US Bancorp’s shares were up by 1.4% yesterday as news of the acquisition hit the markets. Almost four months ago, HSBC (HSBC) and BBVA (BBVA) also sold off parts of their US businesses to regional banks.