CBA in talks with Japanese group to sell Colonial assets

Commonwealth Bank has confirmed it is in advanced talks with a party over the sale of its investment management business.

The Nikkei newspaper is reporting that CBA is set to offload Colonial First State assets in a $3.73b deal.

The Nikkei newspaper is reporting that CBA is set to offload Colonial First State assets in a $3.73b deal. Credit:Dean Lewins / AAP

The country's largest lender had unveiled a plan in April this year to list Colonial First State Global Asset Management.

In an email response to Reuters, CBA noted media reports in the Australian Financial Review which cited Japan's Nikkei newspaper that Japan's Mitsubishi UFJ Financial Group is set to buy CBA's asset management operations for about 300 billion yen.

The report said a unit of Mitsubishi UFJ Trust and Banking, one of Japan's largest lenders, will buy several core units of Colonial First State, CBA's asset management group.

MUFG was not immediately available for comment outside regular market hours.

The deal is likely to close by the fall of 2019, Nikkei reported.

Reuters

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