Sumitomo Trust To Buy Nikko Asset From Citi

The Sumitomo Trust & Banking Co., Japan's fifth largest bank, has agreed to buy Nikko Asset Management, Citi's asset management unit in Japan for about $1.1 billion in October. Nikko Asset has $88 billion in assets under management and the acquisition will make Sumitomo Trust & Banking one of the biggest asset management firms in Japan.

In May, Citi sold Nikko Cordial, the retail brokerage house to Sumitomo Mitsui Financial Group (SMFG), Japan's third-largest bank. Since Nikko Cordial has been the main distributor of Nikko Asset's funds, Sumitomo Trust may consider selling a stake in Nikko Asset to SMFG.