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Thursday, February 12, 2015

Sumitomo Mitsui Trust in talks to purchase Citi's Japanese credit card unit -Nikkei, (NYSE: C)

Japan's Sumitomo Mitsui Trust Bank is in exclusive talks with Citigroup Inc to purchase its credit card business in the country, the Nikkei reported, as the U.S. lender goes ahead with plans to exit consumer banking in the country. Sumitomo Mitsui Trust, part of Sumitomo Mitsui Trust Holdings Inc, is eyeing to reach an agreement next month to buy the Citigroup unit, which offers Diners Club credit cards in Japan, the Nikkei reported. ( Japanese bank expressed its interest in buying Citigroup's credit card business for more than 50 billion yen last fall, the Nikkei reported.Sumitomo Mitsui Trust is also reviewing its technical capabilities for a smooth transition of the business.Earlier, Shinsei Bank Ltd, department store operator Isetan Mitsukoshi Holdings Ltd and credit card service provider JCB Co Ltd had jointly expressed interest in buying the credit card unit, the Nikkei reported in December.

Citigroup Inc. (Citigroup) is a global diversified financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. Shares of C traded higher by 2.4% or $1.19/share to $50.87. In the past year, the shares have traded as low as $45.18 and as high as $56.95. On average, 18984200 shares of C exchange hands on a given day and today's volume is recorded at 17940644.