MUFG sheds $1bn in U.S. Bancorp shares

Japanese megabank will maintain smaller stake, bolster partnership

MUFG raised its stake in U.S. Bancorp last year, during turbulence following the collapse of Silicon Valley Bank. (Photo by Yuki Nakamura)

YUKI NAKAMURA, Nikkei staff writer

August 20, 2024 23:40 JST

TOKYO -- Mitsubishi UFJ Financial Group has sold 24 million shares of American regional bank U.S. Bancorp (USB) on the market, the Japanese company said Tuesday, for an amount expected to reach $1 billion based on the current stock price.

MUFG believes the financial anxiety that followed the 2023 collapse of Silicon Valley Bank in the U.S. has subsided, and so the group aims to improve capital efficiency by releasing the additional funds it injected into USB that year.