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Bloomberg
Mitsubishi UFJ Financial Group Inc is considering selling its US banking arm, as consolidation heats up in the American financial industry.
The Japanese lender is working with an adviser to explore options for MUFG Union Bank NA, said the people, who asked to not be identified because the matter isn’t public. Mitsubishi UFJ has held some informal discussions with select potential buyers of the unit, though it isn’t conducting a formal
auction process, they said.
MUFG Union Bank has about 300 branches and more than $16 billion in equity capital, or book value, according to data from the Federal Deposit Insurance Corp. US banks have sold at a median 1.4 times book value this year, according to data compiled by Bloomberg.
No final decisions have been made, and there’s no certainty the deliberations will lead to a transaction.
The potential sale comes as US regional banks increasingly seek to pair up to better compete with industry giants such as JPMorgan Chase & Co and upstart fintech lenders. A hot market for bank deals has also spurred some foreign players in the US to consider exiting the country.
Spain’s Banco Bilbao Vizcaya Argentaria SA sold its
its US banking arm this year
to PNC Financial Services Group Inc for about $11.6 billion, while Bank Leumi Le-Israel BM is considering selling its New York-based lender.