US-based Citi has reached an agreement with Nikko Cordial to acquire all issued shares of the Japanese firm that Citi does not already own, in exchange for shares of Citigroup.

Under the terms of the agreement, Nikko Cordial’s minority shareholders will be entitled to receive Citigroup shares with an expected value at the time the exchange ratio is determined of JPY1,700 per Nikko Cordial share.

Following completion of the share exchange, which is expected to occur in January 2008, Citi will own 100% of the issued shares of Nikko Cordial through Citigroup Japan Holdings, a direct wholly owned Japanese subsidiary of Citigroup that owns Citi’s approximately 68% stake in Nikko Cordial.

Citi also announced that it has filed an application to list Citigroup Inc shares on the Tokyo stock exchange, and that it aims to have the listing become effective prior to completion of the share exchange.

The share exchange agreement is expected to be signed by the end of October 2007.