Sumitomo Trust to pay $1.2bn for Citi unit

Citigroup said on Thursday it would raise Y112.4bn ($1.2bn) by selling its Japanese fund management arm, part of an effort to repair the US bank’s balance sheet after its rescue by the US government.

Citi agreed to sell Nikko Asset Management to Sumitomo Trust & Banking, Japan’s fifth-biggest bank. The sale is Citi’s second significant divestment in Japan this year, after it reached a deal in April to sell Nikko Cordial, its local securities broker.