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Bank of Tokyo-Mitsubishi, Mitsubishi Trust agree on merger |
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April 20, 2000
TOKYO, APR 19 (UNB/AP) - The Bank of Tokyo-Mitsubishi Ltd. and Mitsubishi Trust and Banking Corp. agreed Wednesday to set up a joint holding company, creating the world's fifth-largest financial group.
The two banks will form the holding company by April next year, officials said. The alliance would have 87 trillion yen (dlrs 837 billion) in deposits and other assets, the world's fifth-largest.
The two banks would integrate their operations under a joint holding company to be established next April. It would manage 45 trillion yen (dlrs 433 billion) in pension and other trusts.
In the same month, stocks of the new holding company will be listed on both the Tokyo Stock Exchange and the New York Stock Exchange.
Trust operations will be integrated by merging two BOT-Mitsubishi subsidiaries - Nippon Trust Bank and Tokyo Trust Bank - with Mitsubishi Trust.
The merger of the three trust banks will be completed by October, 2001, officials said.
The move will enable the banks involved to compete against other planned megagroups in the financial industry.
Japanese banks have been consolidating their operations to recover from billions of dollars in bad loans made in the speculative lending boom of the late 1980s.
The biggest of these mergers is the Mizuho Financial Group, which announced in August that it was creating an institution with dlrs 1.3 trillion in assets by merging Dai-Ichi Kangyo Bank, Fuji Bank, and the Industrial Bank of Japan.
Japan's Sanwa Bank, Tokai Bank and Asahi Bank also plan to merge, creating the country's second-largest bank with 106 trillion yen (dlrs 1 trillion) in assets.
BOT-Mitsubishi and Mitsubishi Trust will initially continue current operations under the joint holding company, to be named Mitsubishi Tokyo Financial Group.
Eventually,
they will merge overlapping operations and concentrate on their individual
strengths, according to the Nihon Keizai, Japan's leading business
newspaper. |