Global banking giant HSBC is to offload its private banking business in Japan to Credit Suisse for an undisclosed sum.
HSBC said that this deal is in line with its global restructuring strategy outlined back in May that will see 30,000 jobs go. The "Strategy Execution Plan" targeted cost savings of $2.5-3.5bn in order to reach the cost efficiency ratio target of 48-52% by 2013.
Nevertheless, HSBC did say: "As the world's third largest economy, with significant trade flows with the rest of the world, Japan continues to be an important market for HSBC."
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While there was no price for the sale included in the statement, the value of the gross assets included in the sale was $2.7bn at 31 October.
One source told the Wall Street Journal that the number of employees at Credit Suisse's private banking unit in Japan, currently around 80, "will roughly double" as a result of the acquisition.
The transaction is still subject to regulatory approvals but is expected be completed by the end of the second quarter next year.
