Mitsubishi UFJ Financial Group has agreed to sell its MUFG Union Bank’s U.S. core regional banking franchise to U.S. Bancorp for approximately $8 billion. MUFG, Japan’s biggest lender, will receive $5.5 billion in cash and approximately $2.5 billion of U.S Bancorp shares, representing 2.9 percent of U.S. Bancorp.
The sale will allow MUFG to shift focus to retail banking business in Japan and Asia, while continuing to focus on wholesale corporate and investment banking franchise in the United States.
S&C has advised several non-U.S. banks on major exits of U.S. retail banking business. Most recently, S&C advised Spain's Banco Bilbao Vizcaya Argentaria, which has agreed to sell its U.S. subsidiary, BBVA USA, to PNC for $11.6 billion; and HSBC in connection with its announced exit from U.S. domestic mass market retail banking business through two sale transactions.
The S&C team advising Mitsubishi UFJ includes Rodge Cohen, Donald Toumey, Keiji Hatano (Tokyo) and Michelle Chen. Heather Coleman advised on executive compensation matters. Mehdi Ansari advised on intellectual property matters. David Spitzer advised on tax matters.