The Federal Reserve granted bank holding company status Tuesday to a Japanese company that has agreed to acquire a Japanese-owned bank in New Jersey.

Chuo Mitsui Trust Holdings Inc. of Tokyo, the sixth-biggest banking group based in Japan, agreed to acquire Sumitomo Trust and Banking Co. Ltd., which is based in Osaka.

As a result, the $161 billion-asset Chuo Mitsui is set to acquire Sumitomo's American unit, the $1.3 billion-asset Sumitomo Trust and Banking Co. (USA), a state-chartered bank in Hoboken, N.J. The bank offers custodial and securities lending services, primarily for Japanese institutional investors and their overseas branches and affiliates.

The Fed also approved Chuo Mitsui's application to engage in nonbank activities in the U.S., such as investment and financial advisory services, through its subsidiaries.

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