Business

Sumitomo, UFJ aim to merge in fall

Sumitomo Trust & Banking Co. and UFJ Trust Bank are in the final stages of negotiations aimed at moving up the completion of their business integration to the fall, sources close to the deal said Friday.

The firms had initially planned to complete their integration by the end of fiscal 2005.

The move is aimed at enhancing the positive effects of the integration and increasing business efficiency as soon as possible, according to the sources.

Sumitomo Trust said in a press release that the bank and UFJ Trust are aiming to agree within the month on details such as the timing of the business integration. No details have been decided yet.

Sumitomo Trust will reportedly set up a new trust bank in September to take over UFJ Trust’s operations, excluding loans to corporate borrowers, which will be taken over by UFJ Bank, a core unit of UFJ Holdings Inc.

Sumitomo Trust will pay UFJ Trust about 300 billion yen in goodwill fees.

The management of two asset-management units of the UFJ banking group — UFJ Partners Asset Management Co. and UFJ Asset Management Co. — will also be integrated into the new trust bank, according to the sources.

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