Two Japanese banks agree to merge

TOKYO, APRIL 19. The Bank of Tokyo-Mitsubishi Ltd. and Mitsubishi Trust and Banking Corp. today agreed to set up a joint holding company, creating the world's fifth-largest financial group.

The two banks will form the holding company by April next year, officials said. The alliance would have 87 trillion yen ($837 billion) in deposits and other assets, the world's fifth-largest.

The two banks would integrate their operations under a joint holding company to be established April next. It would manage 45 trillion yen ($433 billion) in pension and other trusts.

In the same month, stocks of the new holding company will be listed on both the Tokyo Stock Exchange and the New York Stock Exchange.

Trust operations will be integrated by merging two BOT-Mitsubishi subsidiaries - Nippon Trust Bank and Tokyo Trust Bank - with Mitsubishi Trust. The merger of the three trust banks will be completed by October 2001, officials said. The move will enable the banks involved to compete against other planned mega groups in the financial industry.

BOT-Mitsubishi and Mitsubishi Trust will initially continue current operations under the joint holding company, to be named Mitsubishi Tokyo Financial Group.Eventually, they will merge overlapping operations and concentrate on their individual strengths, according to the Nihon Keizai, Japan's leading business newspaper.

- AP

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Section  : Business
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