Chemical Banking Corp. said Friday it sold half its stake in CIT Group for $430 million, which will help fuel the bank's redeployment of capital into core businesses.

The sale to CIT's majority owner, Dai-Ichi Kangyo Bank Ltd., reduces Chemical's holding to 20%. Dai-Ichi Kangyo has an option to buy that 20%, thus gaining 100% control of the New Jersey-based finance company, within five years.

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