Updated from 6:33 a.m. EDT

Citigroup ( C) has reached an agreement in principal to sell Nikko Cordial and parts of Nikko Citigroup to Japanese bank Sumitomo Mitsui Financial , according to a published report.

Sumitomo Mitsui, Japan's second largest bank by market value, is expected to acquire Nikko Cordial Securities, Citigroup's retail brokerage unit, and some operations of Nikko Citigroup, a wholesale investment bank, according to The Wall Street Journal, citing people familiar with the situation. The deal is expected to be announced later this week, the paper said.

The deal is expected to be worth more than 500 billion yen ($5.2 billion), Reuters reports. It was reported earlier by Japan's Nikkei newspaper, but it hasn't yet been made clear exactly which parts of Nikko Citigroup that Sumitomo Mitsui was looking to buy, Reuters notes. Media reports have previously said it would likely include the operations servicing small and medium-sized firms.

If the deal materialized, Sumitomo Mitsui would be the first Japanese bank to buy a top brokerage in Japan, the Nikkei said. Sumitomo was competing against rivals Mitsubishi UFJ Financial Group ( MTU) and Mizuho Financial Group ( MFG) for the Citi units.

Citi did not immediately respond to a request for comment.

Copyright 2008 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

More from Stocks

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker