SMFG cancels Goldman Sachs tieup

Sumitomo Mitsui Financial Group Inc. said Thursday it will cancel a capital tieup with U.S. financial giant Goldman Sachs Group Inc.

Goldman Sachs converted its holdings of SMFG's preferred shares into common shares on the same day, while working to unload its SMFG shares.

The major domestic banking group said it will maintain good relations with Goldman Sachs despite the cancellation of their capital tieup.

SMFG plans to raise the quality of its capital by converting its own shares mostly into common shares to prepare for the reinforcement of international financial regulations.

SMFG issued its preferred shares to Goldman Sachs in 2003 to raise about ¥150 billion.

In addition to the fund from Goldman Sachs, SMFG took other recapitalization measures to build up its financial base to facilitate the disposal of bad loans that was then in the final stages.