Bank of America Merrill Lynch (BofA) has agreed to dispose of its stake in Japanese private banking joint venture (JV) to Mitsubishi UFJ Financial Group, as part of its strategy to focus on global banking business.
Under terms of the agreement, BofA will transfer all of the shares, which represents 49.02% of the JV, to the Bank of Tokyo-Mitsubishi UFJ, and Mitsubishi UFJ Securities Holdings.
The transaction, which is expected to complete on 26 December, would be valued at approximately JPY40bn ($487m).
Following the sale of JV, formed by Merrill Lynch and Mitsubishi UFJ in 2006, BofA will continue to provide products and business support to the private banking business in the country.
The joint venture between BofA and MUFG had operating revenues of JPY25bn ($298m) in the year March 2012 and net profits of JPY6.8bn ($81m).
In August this year, the US bank inked a deal with Swiss private bank Julius Baer to dispose of its unprofitable non-US wealth management business.