Mitsubishi UFJ Financial Group (MUFG) has sold 24 million shares of U.S. Bancorp, a transaction expected to generate around $1 billion based on current stock prices. The Japanese financial giant’s move aims to improve capital efficiency after the financial instability triggered by the 2023 Silicon Valley Bank collapse began to subside.
MUFG initially acquired a 2.89% stake in U.S. Bancorp in December 2022 when it transferred ownership of MUFG Union Bank to the American regional bank. In August 2023, MUFG increased its stake to 4.39% by investing an additional $936 million in response to USB’s efforts to bolster its capital amid financial market turmoil. With this latest sale, MUFG’s stake in U.S. Bancorp reverts to its original 2.89%.
Despite the stake reduction, MUFG maintains that its partnership with U.S. Bancorp will continue. The collaboration, which began after the Union Bank deal, provides services to Japanese customers, including dollar-based account offerings, and may extend into new areas like digital banking and real estate.
MUFG stated that the sale’s impact on its financial results for the fiscal year ending March 2025 would be minimal, as the shares were sold above their book value.
