Sumitomo Trust, Chuo Mitsui in merger talks: report
27 Oct 2009
Two Japanese banks, Sumitomo Trust & Banking and Chuo Mitsui Trust Holdings are reportedly in advance talks to merge and integrate their operations in early 2011, which may see the potential alliance become Japan's fifth- largest listed lender.
Both Tokyo-based Sumitomo Trust, Japan's fifth-largest bank and Chuo Mitsui Trust Holdings, will try to push for a merger so they can better compete in Japan's lucrative asset management industry.
Japanese business daily Nikkei reported today that the merger of the two trust banks would create Japan's largest trust bank, and the fifth-largest listed banking group with a combined market capitalisation of approximately 1.45 trillion yen at current market value.
The paper said that Chuo Mitsui would no longer be an entity after the merger and Sumitomo Trust would be the surviving company, with both "Mitsui" and "Sumitomo incorporated into the new entity.
Following Nikkei's report, trading was halted of the two banks although Sumitomo and Chuo Mitsui Trust said in separate statements to the Tokyo Stock Exchange that ''nothing has been decided.''
Prior to the merger, Chuo Mitsui Trust will move to repay $2.2 billion in public funds that it has received, the report said.
