Toyko’s Mitsubishi UFJ Financial Group, Inc. is buying the 35% of UnionBanCal Corp. it doesn’t already own to take full ownership of the San Francisco-based bank.

The firms announced that they have signed a definitive merger agreement under which MUFG would offer to acquire, through its wholly owned subsidiary The Bank of Tokyo-Mitsubishi UFJ, Ltd, all the publicly held shares of UNBC’s common stock for US$73.50 per share in cash.

MUFG has owned a majority of UNBC since 1996 and currently holds approximately 65.4% of the outstanding shares. The transaction values the shares not owned by MUFG at approximately US$3.5 billion and all of UNBC at approximately US$10.1 billion.

The agreement has been approved by the board of directors of both MUFG and UNBC and by the special committee of the UNBC board.

“This agreement will provide us with a wide range of opportunities to expand our presence in the U.S. market through our enhanced relationship with UNBC,” stated Katsunori Nagayasu, president of BTMU. “We are pleased to deepen this relationship and are confident that this transaction will create long-term value for MUFG shareholders, while creating new opportunities for UNBC employees and customers.”