MUFG to Buy $936 Million Stake in U.S. Bancorp After Unit Sale
- Deal swaps debt with equity following sale of MUFG Union Bank
- Japan’s biggest bank is deepening its alliance with US lender
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Mitsubishi UFJ Financial Group Inc. will buy a stake in U.S. Bancorp for $936 million, deepening an alliance after selling its regional banking business to the US lender last year.
The deal effectively swaps debt owed by U.S. Bancorp to Japan’s biggest bank when it bought MUFG Union Bank in December 2022, according to statements by the companies. The proceeds will be used to repay some of the $3.5 billion U.S. Bancorp borrowed, with the rest due by December 2027.