Hope and fear as tourists trickle back to Kashmir town after attack    Spain and Portugal scramble to restore power as officials chase cause of outage    Israel spy chief to step down after row with Netanyahu exposes deepening rifts    Saudi, Omani foreign ministers visit Rub' Al-Khali border crossing    From his own resources... Luminous lessons in leadership and humanity    Commerce Ministry recalls 6,500 Genesis cars due to risk of fire    Royal Institute of Traditional Arts implements Saudi-Chinese cultural exchange program    Localization in Saudi military industries rises to 19.35%    Logistics park for vehicles worth SR300 million to be set up at Dammam port    HONOR KSA expands its presence with new flagship Experience Store in Riyadh HONOR's first flagship store in KSA provides visitors with a premium experience, exciting offers and free services    Prince Sultan University launches first bachelor's program in language and media    Putin announces three-day Russian ceasefire in Ukraine from 8 May    Al-Falih: Eastern Province hosts 700 investment opportunities worth SR330 billion    Rock & Roll Hall of Fame picks Outkast but not Oasis    Duran leads Al Nassr past Yokohama Marinos into AFC Champions League Elite semi-finals    Al Ahli cruise past Buriram into AFC Champions League Elite semi-finals    Saudi orchestra to perform at Sydney Opera House in May    Al Hilal thrash Gwangju to reach AFC Champions League Elite semi-finals    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Sumitomo Mitsui, Citigroup reach deal on brokerage
Published in Saudi Press Agency on 01 - 05 - 2009


Sumitomo Mitsui is taking over Citigroup's
Japan brokerage businesses, both sides said Friday, as part
of a bigger plan to restructure the struggling U.S. bank, AP reported.
Sumitomo Mitsui Financial Group Inc. will acquire Nikko
Cordial Securities Inc. and some parts of Nikko Citigroup's
Japan operations for about 545 billion yen ($5.6 billion),
company officials said.
Details will be announced by executives at a news
conference at a Tokyo hotel later in the day, they said.
The deal, to be completed between October and December this
year, also includes a cash transfer related to assets of
the brokerage totaling some 21 billion yen, they said.
The much-expected move, which also includes the purchase
of most of Nikko Citigroup's securities operations, is part
of the ailing U.S. bank's global restructuring. Citigroup
has said it is looking into selling its Japan brokerage
operations.
The deal makes Sumitomo Mitsui the first Japanese bank to
buy a top brokerage in Japan.
Two other of Japan's «megabanks» _ Mitsubishi UFJ
Financial Group Inc. and Mizuho Financial Group Inc. _ had
also been wooing Nikko Cordial. But they lost out in the
end.
Nikko Cordial, which Citigroup acquired just a year ago,
is Japan's third-largest brokerage with managed assets of
25 billion yen ($260.4 million) and 111 branches.
Sumitomo Mitsui can hope to expand its brokerage
operations by acquiring Nikko Cordial, which operates in
both individual and corporate sectors in Japan. The
acquisition will allow Sumitomo Mitsui to come close in
size to the nation's industry leader Nomura Holdings.
The acquisition will not include some operations in Nikko
Citigroup's securities business, Nikko Asset Management and
other units, it said, and is an effort to best streamline
the efficiency of Citigroup's overall business.
After reporting a quarterly loss of $8.29 billion,
Citigroup last month reorganized into two entities,
Citicorp and Citi Holdings. The first is focused on
traditional banking around the world, while the second
holds the company's riskier assets and tougher-to-manage
noncore ventures, including Nikko Cordial.
Analysts have said that CEO Vikram Pandit's reorganization
allows Citigroup to sell or spin off the Citi Holdings
assets to raise cash.
Citigroup has already begun scaling back its presence in
Japan to cope with the global financial crisis. In
December, it agreed to sell NikkoCiti Trust and Banking
Corp. to Mitsubishi UFJ Trust and Banking Corp. in an
all-cash deal worth 25 billion yen.


Clic here to read the story from its source.