Japan Banks May Lend $810 Million to Nikkei to Buy FT

Sumitomo Mitsui Financial Group Inc. is among banks that are preparing to offer about 100 billion yen ($810 million) in loans for Nikkei Inc. to buy the Financial Times, people with knowledge of the matter said.

Nikkei is considering using cash to pay for the rest of the 160 billion yen acquisition, the people said, asking not to be identified because the discussions are confidential. Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group Inc. and other banks are also seeking to offer loans to Nikkei, the people said.

Japan’s biggest financial news group last week announced its plans to buy the British newspaper from Pearson Plc to expand its global reach. Nikkei is contemplating funding the transaction with loans and cash, Chief Manager Daisuke Arakawa told reporters on July 24.

A Tokyo-based spokesman for Nikkei declined to comment on funding, asking not to be named because of a company rule. Spokesmen for Sumitomo Mitsui, Mizuho and Mitsubishi UFJ in Tokyo also declined to comment.

Bloomberg competes with the FT and Nikkei to provide news and financial information.