The parties have not disclosed financial terms of the transaction, however it is expected that the acquisition will boost SMBC presence in the country’s wealth-management sector.
Following completion of the transaction, the acquired bank will operate as a wholly-owned subsidiary of SMBC, which will concentrate on private-banking business and investment advisory services targeting high-net-worth individuals.
Having JPY407.9bn ($4.08bn) of assets under management, the acquired entity delivers customized wealth management services to high net worth Japanese individuals, including traditional banking products, portfolio management, investment services and trust services.
The French bank said that the disposal of private banking business will enable it to concentrate on growing markets possibly in Europe, the Middle East and in Asia, where it is planning to ramp up its operations.
Japan’s financial regulator temporarily halted Societe Generale’s private banking operations in Japan for failings to not supervising an investment fund acquired by a pension fund, in October 2012, reported Reuters.
