Mitsubishi Japan to abandon acquisition of Japan-Hing Citigroup Trust Bank

Every journalist Ma?　　Mitsubishi UFJ Financial Group announced yesterday that it had canceled its bid to buy Citigroup's subsidiary of its Japanese banking unit. Mitsubishi UFJ's Trust Bank, a Mitsubishi-UFJ Financial Group, announced on its website that it would cancel the agreement reached last December to buy the Bank of Japan-Hing Citi Trust at 25 billion yen (about $262 million), and said the decision was taken because of changes in strategic and environmental factors.　　Citigroup had previously expected the deal to generate a pre-tax profit of 89 million dollars. Citigroup has accepted a 52 billion dollar bailout from the US government and is raising capital by auctioning assets. Citi has agreed this month to sell its Japanese retail brokerage and part of its investment banking business to Sumitomo Mitsui Financial Group at a price of 545 billion yen, and is also seeking buyers for its Japanese asset management business.