Citigroup Inc is in final talks to sell its Japanese credit-card unit to Sumitomo Mitsui Trust Holdings Inc for at least ¥40 billion (US$335 million), people familiar with the matter said.
The US bank plans to reach a final agreement with Sumitomo Mitsui Trust Bank Ltd as early as next week to sell Citi Cards Japan Inc, which owns the Diners Club brand in the country, for ¥40 billion to ¥45 billion, said the people, who asked not to be identified because the matter is private.
Globally, Citigroup is exiting 11 consumer-banking markets where returns have been poor, including Japan, where it wants to mainly focus on corporate and investment banking.
The bank in December last year agreed to sell its Japanese retail banking business to Sumitomo Mitsui Financial Group Inc.
Citi Cards Japan was formed in 1977. Diners Club has been in Japan since 1960, making it the oldest credit card in the country, according to New York-based Citigroup’s Japanese Web site.
Citigroup declined to comment.
In a statement, Sumitomo confirmed it was considering acquiring the unit, without giving details.
The Tokyo-based company is seeking to strengthen its wealthy individual business by taking over the clients of Citigroup’s card unit, according to the people.
Citi Cards Japan has about 750,000 customers, one of the people said.
Citigroup started the process to sell its consumer banking and card units in September last year.
In December last year, people with knowledge of the matter said, Sumitomo Mitsui Trust was in exclusive talks with Citigroup to acquire the business.
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