Japan’s Mitsubishi UFJ Financial Group is reportedly planning to sell its US banking unit MUFG Union Bank.

According to a Bloomberg report, the Japanese financial services company is working with an adviser to explore options for the US unit.

It has already started conducting informal discussions with potential buyers, the report added citing sources aware of the development. However, Mitsubishi UFJ is yet to start a formal auction process.

MUFG Union Bank has around 300 branches and offers personal, business and commercial banking services. The bank has around $132bn of assets.

The Bloomberg report further added that Mitsubishi UFJ is yet to take a final decision. The ongoing deliberations may also not result in a transaction, the sources told the publication.

The move comes when several regional lenders in the US are looking for consolidation to remain competitive.

Other recent deals

In the recent times, the US has seen a rise in M&A activity.

Earlier this month, Home BancShares agreed to acquire Happy Bancshares in an all-stock deal valuing nearly $919m. The deal will help Home BancShares, the holding company of Centennial Bank, foray into Texas.

Recently, Goldman Sachs also signed a deal to buy consumer loans-provider GreenSky for nearly $2.24bn.

SmartFinancial recently closed the acquisition of Sevier County Bancshares and its subsidiary Sevier County Bank. The combined company will have total consolidated assets of around $4.1bn.