Mitsubishi UFJ Financial Group mulls buying Citi units: Report

M itsubishi UFJ Financial Group, Japan's biggest bank, is considering buying two units from Citigroup Inc, should they come up for sale, a report said on Saturday.

Struggling Citigroup plans to split into two units: Citicorp, which will house its key businesses, and Citi Holdings, which will house brokerage and asset management units including Nikko Cordial Securities and Nikko Asset Management.

Mitsubishi UFJ Financial Group has begun looking into the possibility of buying both Nikko units should they come up for sale, and will convey that interest to Nikko as early as the start of next week, the report said. Comments made by Citigroup CEO Vikram Pandit on Friday hinted at the possibility of the units being put up for sale, Japanese media said.

Mizuho Financial Group and Sumitomo Mitsui Financial Group, Japan's second- and third-largest banks respectively, have also hinted at interest in the two units, the report added. Officials at Mitsubishi UFJ could not be reached for comment.