Citigroup eyes selling Japan consumer unit: paper
Sun May 11, 1:26 AM EDT
TOKYO — Citigroup Inc <C.N> is considering selling its Japanese consumer finance company CFJ KK or cutting the unit's business significantly as part of its plans to shed assets, Japanese daily Nikkei reported on Sunday.
The biggest U.S. bank is aiming to unload $400 billion of assets within three years after being hit hard by flagging mortgage and credit markets.
As part of the move, it is considering selling its Japanese consumer finance unit, although it is unclear if the bank can quickly finalize a deal and may thus resort to reducing operations first instead, the Nikkei said.
CFJ has the fifth-biggest transaction value in Japan's consumer finance industry but its business has struggled since a 2006 revision to a moneylending law.
Citigroup is not expected to sell its Japanese securities units, including Nikko Cordial, the Nikkei added.
The bank completed its acquisition of Nikko Cordial, Japan's third-largest brokerage, earlier this year, giving it full control of about 100 brokerage outlets and a name well-known to investors.
(Reporting by Chisa Fujioka, Editing by Jacqueline Wong)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
