Mitsubishi UFJ Financial Group, Inc. (MUFG)
MUFG Bank, Ltd.
MUFG Americas Holdings Corporation
MUFG Announces Completion of the Sale of MUFG Union Bank to U.S. Bancorp
Tokyo/New York, December 2, 2022 On September 21, 2021, MUFG and MUFG Bank, a core banking subsidiary of MUFG, announced an
agreement[1] to sell all shares of MUFG Union Bank, N.A. (Union Bank), MUFGs subsidiary owned through MUFG Americas Holdings Corporation (MUAH), to U.S. Bancorp
(USB).
MUFG is pleased to announce that the Share Transfer was completed on December 1, 2022. As consideration for the Share Transfer,
MUFGs affiliates received from USB $5.5 billion in cash and approximately 44 million shares of USB common stock (representing approximately 3% of USBs outstanding shares) on the closing date, and will receive from USB an
additional $3.5 billion in cash based on Union Banks excess capital over the tangible book value target of $6.25 billion within five years of the closing date. The purchase price is subject to certain customary adjustments. Before
the closing of the Share Transfer, Union Bank declared and paid a special dividend of approximately $4.6 billion to its parent, MUAH.
In addition,
MUFG has entered into a business collaboration agreement with USB. As part of this arrangement, MUFG and USB have agreed to collaborate on maintaining banking services for certain Japanese retail customers in the United States. We will aim to
develop and expand the collaboration with USB in areas where both USB and MUFG can leverage relative strengths as well as complement each other, such as in digital and Japanese client services.
Following the completion of the Share Transfer, MUFG continues to view the U.S. market as strategically important and will aim to achieve new growth through
its share ownership in and business collaboration with USB, as well as through the focus of management resources on its U.S. wholesale banking businesses where MUFG has considerable strengths as well as its strategic relationship with Morgan
Stanley.
MUFGs financial target for the fiscal year ending March 2023[2] remains unchanged,
including the financial impact related to this transaction and the business collaboration.
[1] For
details on the agreement for the sale, please refer to the following press release:
https://www.mufg.jp/dam/pressrelease/2021/pdf/news-20210921-001_en.pdf
[2] For details on the financial target, please refer to the following:
https://www.mufg.jp/dam/ir/fs/2022/pdf/highlights2209_en.pdf
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