Citigroup plans sale of trust banking unit in Japan

TOKYO, Nov. 29 Kyodo - Citigroup Inc. of the United States is planning to sell NikkoCiti Trust and Banking Corp., its trust banking services unit in Japan, as part of the restructuring of the U.S. financial giant beset by the global financial turmoil, banking industry sources familiar with the deal said Saturday.
Tender offers are expected to be solicited early next week, the sources said. A
handful of major Japanese trust banks including Mitsubishi UFJ Trust & Banking
Corp., Sumitomo Trust & Banking Co. and Mizuho Trust & Banking Co. are expected
to make offers, they said.
The New York-based group is cutting around 50,000 jobs worldwide following a
capital infusion by the U.S. government that is expected to total $45 billion.
NikkoCiti Trust had 136 employees and 20 billion yen in capital as of Sept. 30.
In 1993, Nikko Trust Banking Corp. was set up and was renamed NikkoCiti Trust
after it joined Citigroup in 2001.
Nikko Cordial Securities Inc., a major Japanese securities house also under the
umbrella of Citigroup, has also decided to trim jobs through calls for early
retirements by those aged 40 or older as well as to reduce executive posts.
In May, Citigroup set up a holding company, Nikko Citi Holdings Inc., to bundle
securities and asset management services including Cordial under one wing.
Citibank Japan is expected to be placed under the holding company.
In the meantime, the financial group is eyeing shedding non-core businesses.
The trust banking unit appears to be among them.
==Kyodo