Citigroup to sell Japan assets to SMFG: report

TOKYO: Citigroup has agreed to sell some Japanese assets including Nikko Cordial Securities to Sumitomo Mitsui Financial Group for about 500 billion yen ($5.2 billion) a report said on Tuesday.

A deal, which will also include parts of Nikko Citigroup Ltd., is expected to be announced later this week, the Nikkei business daily said in its evening edition. There was no official confirmation.

Sumitomo Mitsui Financial, Japan's third largest bank, reportedly outbid its two larger rivals Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. in an auction of the assets.

Citigroup, which lost $18.7 billion in 2008, has been looking for buyers of its non-core businesses as part of a strategy to survive the financial crisis.

The Wall Street giant took a controlling stake in Nikko Cordial in 2007 as its partner reeled from a fraud scandal. It acquired full ownership of the firm last year.