TOKYO, Dec 12 (Reuters) - Japan's Mitsubishi UFJ Financial Group is in the lead to buy Citigroup's Japanese trust bank, the Nikkei newspaper said on Friday, in what could be part of a massive global asset sale by the struggling U.S. firm.
Mitsubishi UFJ Trust & Banking, an arm of Japan's largest bank, has outbid rivals Sumitomo Trust & Banking and Mizuho Trust & Banking for the unit, the paper said, citing people familiar with the negotiations.
All three firms bid more than 20 billion yen ($218 million) for NikkoCiti Trust and Banking Corp, the Nikkei said. Japanese media previously reported the unit could fetch up to 40 billion yen.
Spokesmen for both Citigroup in Japan and Mitsubishi UFJ Trust declined to comment.
Mitsubishi UFJ Trust said this week it would work together with Citigroup on the sale and promotion of Japanese depositary receipts overseas.
Citigroup has previously said it has no plans to sell its Japanese brokerage and investment banking units, or other "core businesses in Japan". It has not, however, mentioned plans for its trust bank.
Citigroup last year embarked on an aggressive push to expand in Japan, buying up Nikko Cordial, but has since been hit by heavy losses from the global credit crisis.
In October it sold most of its stake in an investment unit, Nikko Antfactor, to Japanese lender Norinchukin Bank and trading firm Mitsubishi Corp.
The company has all but closed its consumer lending business in Japan, shutting down more than 30 outlets and 540 unmanned branches. ($1=91.55 Yen) (Reporting by David Dolan)