Sullivan & Cromwell acts for MUFG in American bank share buy

Sullivan & Cromwell MUFG Bank $936M US Bancorp

Sullivan & Cromwell has advised MUFG Bank, a subsidiary of Japan’s leading investment institution Mitsubishi UFJ Financial Group (MUFG), on buying USD936 million worth of US Bancorp shares.

Once the purchase of the common stock is completed, MUFG Bank’s shareholding in US Bancorp will increase to 4.39%. The American bank holding company will use the capital to pay off the USD3.5 billion in debt arising out of its acquisition of MUFG Union Bank last year for USD8 billion.

The team advising MUFG Bank included senior chair Rodgin Cohen in New York, corporate partners Donald Toumey in New York, Keiji Hatano in Tokyo and Michelle Chen in Washington, New York-based securities partner Robert Downes and tax partner David Spitzer, and Washington-based foreign investment partner Eric Kadel Jr and antitrust partner Joseph Matelis.

A business collaboration agreement between MUFG and US Bancorp has been established, under which they will work together to maintain banking services for certain Japanese retail customers in the US, and expand business opportunities in sectors including digital, corporate transactions, financial services for Japanese customers and global markets business.