Japan's Mitsubishi Tokyo Financial Group and UFJ Holdings said on Thursday that they have clinched a deal to create the world's largest bank by October 1, 2005.
The merged entity -- Mitsubishi UFJ Holdings, Inc -- will command total assets of about 188 trillion yen ($1.7 trillion), said agency reports.
The merger deal beat a rival bid from Japan's third-biggest bank Sumitomo Mitsui Financial Group. UFJ scrapped its deal with Sumitomo, when it began merger talks with Mitsubishi Tokyo in July.
Sumitomo said it would appeal to the Supereme Court against the merger agreement.
The shares of the new entity would be listed on the New York, London, Tokyo, Osaka and Nagoya stock exchanges.
As part of the merger, two brokerage units, Mitsubishi Securities and UFJ Tsubasa Securities, would also merge creating Mitsubishi UFJ Securities Co. Ltd.
Sources close to the deal said that Nobuo Kuroyanagi, the current MTFG president would be appointed president of the new company, while UFJ Holdings president Ryosuke Tamakoshi would be the chairman.
Although the financial terms were not disclosed, Mitsubishi Tokyo had earlier offered UFJ 700 billion yen ($6.3 billion).
The merger pushed Citigroup, which has assets worth $1.3 trillion, to the second spot.
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