UFJ and Tokyo-Mitsubishi Bank plan mega-merger

**Maciamo** · Jul 15, 2004, 08:59

BBC News : Japan bank UFJ eyes mega-merger

UFJ, Japan's fourth biggest bank, has confirmed it is seeking a takeover by Mitsubishi Tokyo Finance Group (MTFG), to create the world's biggest bank.
The combined assets would be worth 188 trillion yen ($1.74 trillion; ｣0.94 trillion) - bigger than Citigroup.

[The merger] would act as a rescue plan for UFJ, say analysts, after three years of heavy losses.

By contrast, MTFG, Japan's second largest bank, is one of Japan's healthiest.

UFJ's bad debts

UFJ is a relative laggard in clearing up its bad loans position.

UFJ reported large losses for the last financial year and was criticised by the Financial Services Agency in June for being evasive when inspections by regulators were taking place.

UFJ vs Tokyo-Mitsubishi :

UFJ: Net income - 402bn yen loss
UFJ: Assets - 82 trillion yen
UFJ: Branches - 520 domestic, 26 overseas

MTFG: Net income - 560bn yen profit
MTFG: Assets - 106 trillion yen.
MTFG: Branches - 315 domestic, 81 overseas
source: UFJ, MTFG March 2004

**squallleonheart** · Jul 15, 2004, 23:43

wow... that's pretty big, and would suck if something happened to it...like a fire or something

**Wang** · Jul 16, 2004, 02:56

I think that would be quite cool.

**名無し** · Jul 16, 2004, 08:29

Sumitomo Moves to Halt UFJ - Mitsubishi Tokyo Merger Talks

**名無し** · Jul 31, 2004, 00:29

Sumitomo Enters UFJ Merger Fray (CNN)
Sumitomo Mitsui Offers Competing Bid for UFJ Holdings (Bloomberg)

**Maciamo** · Aug 14, 2004, 07:42

That seems to be done.

BBC News : Merger forms world's biggest bank

Japan's Mitsubishi Tokyo Financial Group has clinched a deal to take over troubled rival UFJ Holdings after weeks of tense negotiations.
The signing of the agreement beats a rival bid from Sumitomo Mitsui Financial Group, although the latter is refusing to throw in the towel.

or not quite ?

After Thursday's deal was announced, Sumitomo - the country's number three - said it would press on with a rival bid for UFJ, whose market value is about $23bn.

It had earlier argued that the proposed MTFG-UJF tie-up would breach an existing agreement it had with UFJ to buy its trust banking operations.

For memo, UFJ Bank was created from the merger of Sanwa Bank and Tokai Bank, while UFJ Trust used to be called Toyo Trust. Together, they form the UFJ Holdings. The solution might be for MTFG to acquire UFJ Bank and Mitsui-Sumitomo to purchase UFJ Trust.

Anyhow...

The two banks' branch networks appear to fit well together, with three quarters of MTFG's domestic branches located in eastern Japan, and three in five of UFJ's in the west and centre.

"MTFG is strong in wholesale and UFJ in retail, meaning they have totally different business aspirations and skills to achieve their goals," said Yoshimasa Nishimura, a former finance ministry banking bureau head.

But Mr Nishimura, now at Tokyo's Waseda University, warned: "There is no guarantee the new bank won't get bogged down in confusion, as was the case for past bank mergers."