NEW YORK (
agreed to sell its asset management operations in Japan to
Sumitomo Trust and Banking
in a deal that values the business at 120 billion yen ($1.26 billion).
The sale of Nikko Asset Management is expected to close in the fourth quarter, Citigroup said Thursday. The sale isn't expected to have a "material impact" on Citigroup's net income, the bank said.
"With the previously announced sales of our brokerage and trust banking businesses in Japan, this transaction marks another milestone in the implementation of our Citicorp/Citi Holdings strategy," said Citigroup CEO Vikram Pandit in a statement.
The bank, under pressure from regulators, separated its core businesses from non-core units and troubled assets into a so-called good bank, Citicorp, and bad bank, Citi Holdings. The company has been working to pare down its Citi Holdings assets.
The sale of Nikko Asset Management is a continuation of Citigroup's efforts to raise capital. Earlier this month,
agreed to buy Citigroup's Japanese trust banking subsidiary NikkoCiti Trust and Banking Corp., while in May Citigroup agreed to sell Japanese brokerage Nikko Cordial.
-- Written by Joseph Woelfel in New York