UFJ Holdings Inc. and Mitsubishi Tokyo Financial Group Inc. signed a basic accord Thursday to merge their operations in October next year to create what would be the world's biggest banking group, with assets worth 189 trillion yen.
The agreement by UFJ, the weakest of Japan's four mega-banking groups, and second-biggest MTFG came a day after the Tokyo High Court cleared the way for their full merger, overturning a lower court injunction that had virtually blocked their tieup talks.
MTFG is expected to quickly give its weaker partner a 700 billion yen fund injection.