Daiwa Securities Group Inc. [8601.T]
TOKYO, Apr 27 (Pulse News Wire) – Daiwa Securities Group Inc. (8601.T) announced its acquisition of Orix Bank, aiming to enhance sustainable growth through synergies.
The transaction involves acquiring all outstanding shares of Orix Bank for a total consideration of 100% yen, fully funded by internal resources. Post-acquisition, the combined entity will have total assets of approximately 9 trillion yen and a capital buffer aimed at maintaining robust financial health. The integration is expected to create significant synergy effects, including a potential increase in funds income of ¥35.00 billion annually within five years.
Additionally, the merged bank plans to expand deposits by more than 2 trillion yen over the next five years, leveraging Orix Bank’s strong lending capabilities and Daiwa Next Bank's customer base. The deal also includes discussions around issuing perpetual subordinated debt to further leverage capital buffers for investment and shareholder returns. Daiwa expects the merger to positively impact earnings, with a projected ordinary profit of about ¥30.00 billion and net profit of about ¥20.00 billion post-completion.
The contract signing took place, with the share transfer scheduled to be completed by October 2026, subject to regulatory approvals.
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