CTBC Financial to buy Tokyo Star Bank

Tokyo Star will be first Japanese lender acquired by a foreign bank.

Taiwan's CTBC Financial Holding Company, formerly Chinatrust Commercial Bank Co Ltd, has agreed to buy Tokyo Star Bank for US$519 million, according to the Nikkei business daily.

Privately owned Tokyo Star Bank will be the first Japanese lender to be bought out by a foreign bank. The acquisition is still pending regulatory approval but is expected to be completed in September or October.

U.S. investment fund Lone Star is the biggest shareholder in Tokyo Star Bank. Other shareholders include Tokyo-based Shinsei Bank and French bank Credit Agricole.