US financial services group Citigroup has acquired a majority stake in Japan''s Nikko Cordial for $7.7 billion, making it the largest foreign takeover in Japan. The US giant will pay $14.24 a share to raise its stake in the brokerage firm to 61 per cent.

The acquisition is in keeping with its goal of generating the majority of its revenue overseas since the US is not growing as fast as the rest of the world

Charles Prince, CEO, Citigroup, has said he wanted 60 per cent of Citigroup''s revenue to come from non-US operations, up from 45 per cent in 2006.

Analysts say the deal also made strategic sense because Citigroup is relatively weak in Japan and Nikko Cordial has 109 branches and about $335 billion in client assets. In Japan, the US banking group is expected to align its retail banking operations with Nikko Cordial''s brokerage business.

Citigroup also gains access to Nikko Cordial''s corporate clients for the bank''s investment banking business, Goldberg said.

In a communique, the US group said "Citi and Nikko Cordial, under the direction of a joint steering committee, will be identifying a wide range of opportunities to leverage their respective retail businesses, capital markets and banking businesses, technology and administrative services, asset management, principal investments, organizational structure, and employees and management in Japan."