The agreement by UFJ, the weakest of Japan's four megabanking groups, and second-biggest MTFG came a day after the Tokyo High Court cleared the way for their full merger, overturning a lower court injunction that had virtually blocked their tie-up talks.

MTFG is expected to quickly give its weaker partner a ¥700 billion fund injection.

The agreement means the end of a rare bidding war in the banking industry, involving third-ranked Sumitomo Mitsui Financial Group Inc, although UFJ did not say when and how it will formally turn down SMFG's offer.

The Japan Times Weekly: Aug. 21, 2004
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