Sumitomo Mitsui targets buying stake in Chinatrust

Chinatrust aims to use Sumitomo’s $85mln investment for its expansion in the mainland.

Japan's Sumitomo Mitsui Banking Corp plans to invest in Chinatrust Financial Holding Co., Taiwan's biggest private-sector banking group, the Nikkei business daily reported.

SMBC is expected to invest 7-8 billion yen (about $75 million to $85 million) in Chinatrust, for a stake of slightly more than 1 percent, the paper said without citing sources.

The Sumitomo Mitsui Financial Group Inc, a unit of SMBC, is reportedly in advanced talks with Chinatrust and the two banks are expected to reach a basic agreement sometime in April, the report said.

View the full story in Reuters.