DEAL NEWS: Paul, Weiss, Skadden, Davis Polk and two of Japan's largest domestic firms, Mori Hamada & Matsumoto and Nagashima Ohno Tsunematsu have all played leading roles in one of the largest Japanese deals to close this year–Sumitomo Trust and Banking Co's acquisition of Citigroup's controlling interest in Nikko Asset Management (NAM).
The deal, which values NAM at $US1.26bn, is expected to close in the fourth quarter of 2009 and comes after a long process of internal restructuring at Citigroup. Under increasing pressures from regulators and suffering from the financial crisis, the company has separated its business into core (Citigroup) and non-core (Citi Holdings) units.
Over the past few months the company has working to divest its Citi Holdings assets of which NAM is part. Earlier this month, Nomura agreed to purchase Citigroup's Japanese banking trust subsidiary NikkoCiti Trust and Banking Corp and in May Citigroup agreed to sell Japanese brokerage Nikko Cordial to Sumitomo Mitsui Financial.
A Paul, Weiss team led by Tong Yu, Toby Myerson and Steven Williams, provided US law advice to long-time client Citigroup while for Japanese law advice the company turned to a Nagashima Ohno & Tsunematsu team led by Hiroshi Mitoma. A Mori Hamada & Matsumoto team led by partner Satoshi Nakamura acted for Sumitomo Trust Bank, while NAM tapped a Davis Polk team led by Tokyo-based partner Theodore Paradise.
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