Aichi Financial Group and San ju San Financial Group said they have reached an agreement to pursue a merger, with completion aimed for 1 April 2027.
The planned business integration is expected to take the form of an absorption-type merger, under which one company will remain.
The process will depend on approval at each company’s shareholder meeting, as well as permissions and other approvals from the relevant authorities.
The two groups said details including the name of the combined holding company, the location of its head office, its management structure and organisation will be settled through further discussions before a definitive agreement is signed.
The transaction would form a regional banking group with total assets of more than Y11.6tn, equivalent to about $74bn, the company said in a filing. .
The figures presented for the combined group include deposits and related balances of Y10,009.8bn on a non-consolidated basis per bank, consolidated net income of Y27.8bn, a consolidated workforce of 5,023 and a branch network of 362 banking outlets.
Following the integration, the group’s business base across Aichi and Mie prefectures is set to widen, with its location network extending to Tokyo, Osaka and six other prefectures, the company said in a statement.
Through this business integration, the companies will leverage economies of scale to boost competitiveness and enhance customer convenience. This will be achieved by investing in IT and digital transformation (DX) while expanding into new business sectors.
“Japan’s Aichi Financial and San ju San agree on merger ” was originally created and published by Retail Banker International, a GlobalData owned brand.
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