Citigroup's Japan Credit Card Unit Receives Joint Offer : Report

(RTTNews) - As U.S. banking giant Citigroup Inc. (C) moves to unload its Japanese credit card business, three companies have come forward for a joint acquisition, the Nikkei reported.

The report indicated that Shinsei Bank, department store operator Isetan Mitsukoshi Holdings and credit card service provider JCB want to acquire Citi Cards Japan, which offers Diners Club credit cards in Japan.

The report said that Shinsei Bank will likely be the main buyer. JCB will assist with account settlements and other operations, and Isetan Mitsubishi will provide its department store services to cardholders.

According to report, Shinsei Bank has already proposed the joint acquisition. The three have not decided on how much they will pay, or other terms of the deal. After Citi Cards Japan assets are screened, they will present more details.

Sumitomo Mitsui Trust Bank has also proposed buying the unit. Citi plans to start full-blown talks with both suitors as early as this month.

The sales price will likely come to 30 billion yen to 50 billion yen or $248 million to $413 million, the report said.

Citigroup said in October that it planned to exit retail banking in the consumer franchises in Costa Rica, Czech Republic, Egypt, El Salvador, Guam, Guatemala, Hungary, Japan, Nicaragua, Panama and Peru, as well as the consumer finance business in Korea.