Tokyo - Sumitomo Mitsui Financial Group Inc said Friday it has agreed to acquire Japanese retail broker Nikko Cordial Securities Inc from Citigroup Inc for 545 billion yen (5.56 billion dollars) in October. The Japanese mega-banking group was also to take over part of Nikko Citigroup Ltd, which is the US company's wholesale securities unit in Japan, in its domestic equity and bond underwriting operations.

Sumitomo Mitsui will be able to expand its business after it acquires Japan's third-largest brokerage house Nikko Cordial and Nikko Citigroup, the firm said.

Strengthening business ties with another securities house, Daiwa Securities Group Inc, and the new acquisition would make Sumitomo Mitsui a brokerage business as strong as Nomura Holdings Inc, the nation's largest brokerage house.

The agreement also allows Sumitomo Mitsui and Citigroup to jointly conduct corporate and investment banking operations.(dpa)