Mitsubishi UFJ Financial Group Inc. plans to sell part of its American banking unit MUFG Union Bank to U.S. Bancorp in a deal expected to be worth over ¥1 trillion ($9.12 billion), sources familiar with the matter said Tuesday.
The Japanese financial group will acquire MUFG Union Bank's operations for corporate customers and then sell all the shares to U.S. Bancorp, the sources said.
MUFG is expected to secure some U.S. Bancorp shares later to form a capital tie-up as the Japanese firm reassesses its underperforming U.S. sectors.
MUFG Union Bank has about 300 branches and more than $16 billion in equity capital, or book value, according to data from the Federal Deposit Insurance Corp. U.S. banks have sold at a median 1.4 times book value this year, according to data compiled by Bloomberg.
The potential sale comes as U.S. regional banks increasingly seek to pair up to to better compete with industry giants such as JPMorgan Chase & Co. and upstart fintech lenders. A hot market for bank deals has also spurred some foreign players in the U.S. to consider exiting the country.
Headquartered in Minneapolis, Minnesota, U.S. Bancorp runs more than 2,000 branches in the United States.