LONDON (ShareCast) - (Sharecast News) - Japan's Mitsubishi UFJ Financial Group has agreed to sell the retail banking division of its US regional bank MUFG Union Bank to US Bancorp in a cash and shares deal worth around $8bn.
The price includes approximately $5.5bn in cash and just under 44.4m in shares. The deal will leave MUFG with a stake of around 2.9% in US Bancorp.

"MUFG has viewed the US regional banking business as an important business for the group's strategy. At the same time, given MUB's current business environment, including the need for increased technology investments as part of digital transformation, a certain scale is required to maintain and strengthen competitiveness," the company said.

"Under these circumstances, MUFG concluded that transferring MUB to USB, a major US bank with a strong business foundation, is the most appropriate decision that will lead to providing higher quality financial services to customers and communities and unlock MUB's potential franchise value."

The deal is expected to close by the end of June 2022.

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