MUFG to buy US$936mil stake in US Bancorp after subsidiary sale

The deal effectively swaps debt owed by US Bancorp to Japan’s biggest bank when it bought MUFG Union Bank in December 2022, the companies said. — Bloomberg

TOKYO: Mitsubishi UFJ Financial Group Inc (MUFG) will buy a stake in US Bancorp for US$936mil (RM4.26bil), deepening an alliance after selling its regional banking business to the US lender last year.

The deal effectively swaps debt owed by US Bancorp to Japan’s biggest bank when it bought MUFG Union Bank in December 2022, according to statements by the companies. The proceeds will be used to repay some of the US$3.5bil (RM16bil) US Bancorp borrowed, with the rest due by December 2027.