SMFG set to buy part of Nikko Citi for $5.2 billion

Sumitomo Mitsui Financial Group SMFG, Japan's second biggest bank by market value, is about to acquire Citi's wholesale and retail securities arms in Japan for $5.2 billion, according to several sources quoted on the wire services and in the Nikkei group of media organs on Tuesday and Wednesday.

Nikko Citigroup, the wholesale arm, is 49%-owned by Citigroup Global Markets itself 100%-owned by Citigroup, USA and 51%-owned by Nikko Citi Holdings. Nikko Cordial Securities, the retail brokerage, is 100%-owned by Nikko Citi Holdings.

The Japanese arm of the US bank was thrown open to Japanese bids as part of an effort by Citi to shed...