Citigroup Inc. has decided to sell NikkoCiti Trust and Banking Corp. to Mitsubishi UFJ Trust & Banking Corp. for ¥25 billion, Nikko Citi Holdings Inc. said Tuesday.

The trust banking unit of Mitsubishi UFJ Financial Group Inc. is expected to complete the transaction in cash by April 1.

"This (move) is to further reinforce Mitsubishi UFJ Trust & Banking Corp.'s strength in the Japanese market and Citigroup's global expertise and track record in transaction services," Nikko Citi Holdings said in a statement.

A number of other leading trust banks, including Sumitomo Trust & Banking Co. and Mizuho Trust & Banking Co., are also believed to bid for NikkoCiti Trust.

The decision to spin off the trust banking unit is part of wide-ranging restructuring being undertaken by the ailing U.S. giant, which is struggling to stem heavy losses triggered by the global economic meltdown.

Citigroup is cutting around 50,000 jobs worldwide, and banking industry sources say the New York-based group plans to slash about 1,000 jobs, or more than 10 percent of it workforce, at brokerage Nikko Cordial Securities Inc.