Nikko Asset on Citi's Selling List

It was reported that Citigroup has started the divestment process of Nikko Asset Management, soliciting interest from major Japanese banks, insurance companies, and investment funds.

Nikko Asset is one of the largest asset managers in Japan with 9.1 trillion yen AUM and 561 employees, including 64 fund managers and 41 economists/analysts.

In February this year, Citigroup started the auction process for Nikko Cordial Securities and all 3 major banking groups in Japan - Mitsubishi UFJ, Mizuho and Sumitomo Mitsui - submitted bids. It is now considered likely that Citi will seek to sell Nikko Cordial and Nikko Asset as one package. The winner of the package will immediately gain substantial advantage in their respective fields, while the losers will have to face much tougher competition.

Nikko Principal Investments is also a shareholder of Nikko Asset Management.