Citigroup Inc. said it is "committed" to its Japanese brokerage unit Nikko Cordial Securities Inc., rebuffing media reports the division is up for sale as Citigroup splits in two to rebuild capital.
Citigroup plans to keep Nikko Cordial, which it finished buying for about ¥1.6 trillion a year ago, for at least another year, two company officials with knowledge of the matter said, declining to be identified because they aren't authorized to speak publicly.
"Nikko Cordial is an outstanding business with an excellent business model and a strong market position," Citigroup said in an e-mail statement Monday. "Citigroup remains committed to maximizing the value of Nikko Cordial over the next few years."
Several newspapers reported over the weekend that Citigroup might sell Nikko Cordial. The Yomiuri Shimbun said Saturday that Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. are seeking to acquire the brokerage, and that Mitsubishi UFJ would inform Nikko's executives of its intentions as early as Monday.
Tomohiro Kato, a spokesman for Tokyo-based Mitsubishi UFJ, said the bank isn't in talks to buy Nikko Cordial. Masako Shiono, a spokeswoman for Mizuho, declined comment. Citigroup Tokyo-based spokeswoman Atsuko Yoshitsugu declined comment beyond the statement.
Speculation about what assets Citigroup might sell comes after Chief Executive Officer Vikram Pandit said last week he would undo a decade of acquisitions by separating the bank into two units. Pandit's reshuffle came after Citigroup racked up $28 billion in net losses over the past five quarters.