Nomura Holdings ( NMR - Get Report) and insurer T&D Holdings are among the firms in the second round of bidding for Citigroup's ( C - Get Report) Japanese asset management arm in a deal likely to exceed $1 billion, Reuters reports, citing sources.

Bidders for Nikko Asset management, one of Japan's largest fund managers, include Nomura Asset Management, a unit of leading Japanese broker Nomura Holdings, T&D Holdings and Sumitomo Trust and Banking , said the sources. Other possible bidders are Sumitomo Mitsui Financial and Mizuho Financial ( MFG), Reuters reports, citing the Nikkei business daily newspaper.

Citigroup is expected to narrow the list of potential buyers to around two and conduct the final bidding as early as this month, the sources said.

Citigroup put Nikko Asset Management up for sale as part of its efforts to raise cash, Reuters notes. The bank last month agreed to sell Japanese brokerage Nikko Cordial and key investment banking assets to Sumitomo Mitsui Financial.