Japan's MUFG abandons plan to snap up NikkoCiti

JAPAN&rsquo;S largest bank Mitsubishi UFG (MUFG) yesterday walked away from a $262m (&pound;172m) deal to buy Citigroup&rsquo;s trust bank NikkoCiti.<br /><br />An unlisted unit of the bank called Mitsubishi UFJ Trust said in December that it was prepared to snap up the unit, but the transaction was called off after rival Sumitomo Mitsui beat MUFG to snap up Citi&rsquo;s Japanese brokerage, Nikko Cordial, earlier this month.<br /><br />MUFG also bid for the units but could not match the $7.9bn offered by Sumitomo.<br /><br />In a joint statement, Mitsubishi UFJ Trust and NikkoCiti said: &ldquo;We have decided that considering changes in our two firms&rsquo; strategy and environment, scrapping the planned acquisition was desirable for both firms&rsquo; growth.&rdquo;<br /><br />MUFG is not expected to incur any kind of break fee for walking away from the deal.