Japan’s MUFG to exit US retail banking in $8b deal with US Bancorp

FILE PHOTO – People walk past a branch of Mitsubishi UFJ Financial Group’s bank of Tokyo-Mitsubishi UFJ (MUFG) in Tokyo, Japan, May 16, 2016. REUTERS/Thomas Peter/File Photo

Mitsubishi UFJ Financial Group (MUFG) is pulling back from U.S. retail banking with the $8 billion sale of MUFG Union Bank (MUB) to U.S. Bancorp as digital technology and industry consolidation squeeze out smaller lenders.

The deal includes $5.5 billion in cash and $2.5 billion worth of shares that will give Japan’s biggest lender a 2.9% stake in Minneapolis-based U.S. Bancorp, the fifth-largest bank in the United States, the banks said on Tuesday.

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