MUFG Completes Sale of MUFG Union Bank to U.S. Bancorp

MUFG completed the sale and share transfer of MUFG Union Bank to U.S. Bancorp (USB) on Dec. 1. MUFG’s affiliates received $5.5 billion in cash from USB, and approximately $44 million shares of USB common stock (representing approximately 3% of USB’s outstanding shares) on the closing date. MUFG will receive an additional $3.5 billion in cash from USB based on Union Bank’s excess capital over the tangible book value target of $6.25 billion within five years of the closing date. Union Bank declared and paid a special dividend of approximately $4.6 billion to its parent, MUAH before the closing.

MUFG and USB entered a business collaboration and have agreed to collaborate on maintaining banking services for certain Japanese retail customers in the United States. It will aim to develop and expand the collaboration with USB in areas where both USB and MUFG can leverage relative strengths as well as complement each other, such as in digital and Japanese client services.

Following the completion of the share transfer, MUFG continues to view the U.S. market as strategically important and will aim to achieve new growth through its share ownership in and business collaboration with USB, as well as through the focus of management resources on its U.S. wholesale banking businesses where MUFG has considerable strengths as well as its strategic relationship with Morgan Stanley.

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