Nomura and T&D among bidders for Citi's asset management arm

Investment bank Nomura Holdings and insurer T&D Holdings are among five firms in the second round of bidding for Citigroup's asset management arm in Japan in a deal likely to exceed $1 billion (Dh3.67bn), said insiders. Mid-sized Sumitomo Trust and Banking is also bidding for Nikko Asset Management, they said, after Citigroup put Japan's third-largest fund manager up for sale as part of efforts to recover from heavy losses in the global financial crisis. Sumitomo Mitsui Financial Group (SMFG) and Mizuho Financial Group are also among the bidders left for Nikko Asset Management, the Nikkei business daily reported. The sale comes after Citigroup sold Japanese brokerage Nikko Cordial and key investment banking assets to SMFG, the country's third-largest bank, for about $5.9bn. Officials from Citigroup, Nomura, which is bidding via its Nomura Asset Management unit, T&D, Sumitomo Mitsui and Sumitomo Trust declined to comment on the deal. Citigroup is expected to narrow the list of potential buyers to around two and take final bids as early as this month, said insiders. They declined to be identified as they were not authorised to speak publicly about the deal. Citi spent about ¥1.5 trillion (Dh57bn) to acquire the Nikko Cordial franchise in a transaction completed early last year, aiming to expand in the world's second-largest economy. That deal gave it control of Nikko Asset, which lists on its website ¥8.8trn of assets under management as of March 2009. Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .