TOKYO, May 26 (Reuters) – Japanese chipmaker Renesas Electronics Corp plans to sell off loss-making operations and cut its payroll by at least 12,000, a source close to the matter told Reuters on Saturday, as the company battles high costs and nimbler foreign rivals.

Sources also confirmed that Renesas, the world’s largest maker of microcontroller chips for cars, aims to raise more than 100 billion yen ($1.3 billion) to pay for restructuring costs and will take the plan to Hitachi Ltd and its other major shareholders as early as next week.

The Nikkei business daily reported on Saturday that Taiwan Semiconductor Manufacturing Co plans to buy a Renesas chip plant at Tsuruoka, in northern Japan, as part of the plan, although the sources did not confirm this.

Renesas could not be reached for comment. TSMC spokeswoman Elizabeth Sun declined to comment on the report, saying the company does not comment on market rumours.

Renesas said last week it would form a tie-up with TSMC, which already counts Renesas as one of its clients, but declined to give details ahead of a formal announcement due on Monday.

Renesas has posted cumulative net losses of nearly $6 billion over the past seven years as it struggles to keep up with South Korea’s Samsung Electronics and others in an expensive race to build ever smaller and faster chips.

Hobbled by a strong yen and forced to close eight of its factories after natural disasters in Japan and Thailand last year, Renesas has said it would hammer out a restructuring scheme by July.

TOKYO (Reuters) – A group of Japanese firms is in talks to pay $4.4 billion for a stake in Australia’s Wheatstone gas field that had been set aside for bailed-out nuclear operator Tepco, as the country looks to shore up long-term energy supplies.

Tokyo Electric Power Co (Tepco) (9501.T: Quote, Profile, Research, Stock Buzz), which is now under state control following last year’s earthquake and tsunami that devastated its Fukushima nuclear plant, had planned to buy the stake to secure additional supplies of liquefied natural gas.

Amid concern that Chinese and other foreign companies could snatch the deal from cash-strapped Tepco, the utility asked trading house Mitsubishi Corp (8058.T: Quote, Profile, Research, Stock Buzz) and shipping company Nippon Yusen KK (9101.T: Quote, Profile, Research, Stock Buzz) to step in, the Nikkei business daily reported on Wednesday.

Nippon Yusen confirmed on Wednesday it was in talks with Mitsubishi and Tepco to buy a stake in the project, but said no decision had been made. A TEPCO spokesman said talks on Wheatstone stake were ongoing.

“Energy resources are a lifeline for Japan and important, so it is very meaningful for us to be involved in the talks,” the Nippon Yusen spokesman said.

The companies were looking at paying $4.4 billion for the stake, a person with direct knowledge of the matter told Reuters. He declined to be named because the negotiations were not public.

Japan’s government would take part in the deal through state-owned Japan Oil, Gas and Metals National Corp (JOGMEC), the Nikkei said, while the Japan Bank for International Cooperation (JBIC) and private banks would contribute about $3.3 billion in financing.

TOKYO (Reuters) – Japan’s big banks reported a rise in annual profits on Tuesday, helped by a stock market rally and lower credit costs, but forecast a tougher year ahead, putting further pressure on their overseas drive to fill the gap.

The big three lenders – Mitsubishi UFJ Financial Group (MUFG) (8306.T: Quote, Profile, Research, Stock Buzz), Mizuho Financial Group (8411.T: Quote, Profile, Research, Stock Buzz) and Sumitomo Mitsui Financial Group (SMFG) (8316.T: Quote, Profile, Research, Stock Buzz) – are not expected to see the hefty bond trading gains and very low bad loans booked that have boosted profits in recent years.

And loan demand at home is likely to remain sluggish as Japan’s long battle against deflation continues.

Mizuho, the second largest lender by assets, forecast a net profit of 500 billion yen ($6.26 billion) for the current financial year, well ahead of the consensus forecast of 374.2 billion yen but up only 3.1 percent on the year just ended.

SMFG expected net profit for the year that began April 1 of 480 billion yen, down 7.4 percent on 2011/12 but ahead of the consensus call of 441.2 billion yen.

With limited exposure to Europe’s troubled sovereign debt, Japan’s banks enjoyed solid earnings in the year just ended.

Results were lifted by hefty government-bond trading gains, while the banks’ massive equity portfolios got a boost in their fiscal fourth quarter to the end of March, during which the benchmark Nikkei average .N225 rose 19.3 percent.

TOKYO, May 15 (Reuters) – Japan’s top banks are set for profit declines this year after solid growth in the past two years as razor-thin yields curb their hefty government-bond trading gains and as a tepid domestic economy curtails loan appetite.

The top three lenders – Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group and Sumitomo Mitsui Financial Group (SMFG) – hold about $1.25 trillion worth of Japanese government bonds (JGBs) on their books, which, if interest rates rise, could spur huge losses.

In recent times, however, their earnings have been boosted by JGB trading gains.

MUFG, Japan’s No.1 lender by assets, logged 285 billion yen ($3.6 billion) in JGB trading gains for the nine months ended in December, while net interest income, or profits from lending activities, fell by 118 billion yen for the period. MUFG’s 46 trillion yen JGB holding accounts for about 22 percent of its total assets.

The three banks have forecast net profit growth of between 5 percent and 54 percent for the year ended in March. They will announce their results on Tuesday.

As their loan books shrank due to the private sector’s reluctance to borrow, the banks pumped up lending to the government via JGBs, whose prices rose amid the central bank’s ultra-low interest policy.

But with the yield on the latest 10-year cash JGB at 0.850 percent, near its lowest since October 2010, the banks see limited room for JGB prices to rise and consequently few opportunities to make the kind of gains they enjoyed in recent years. Bond yields and prices move in opposite directions.

TOKYO (Reuters) – The core banking unit of Mitsubishi UFJ Financial Group (MUFG) (8306.T: Quote, Profile, Research), Japan’s biggest lender by assets, may spend over 1 trillion yen (7.5 billion pounds) in the next three years on overseas acquisitions to diversify from a slowing domestic market, a senior executive said.

Japanese banks are under pressure to tap overseas markets to counter sluggish loan demand and consumer spending in the world’s third-largest economy.

MUFG has spent at least $20 billion on overseas acquisitions since 2008, including the purchase of a stake in Morgan Stanley.

“Our global unit is expected to play the role of growth driver,” Takashi Morimura, deputy president and head of global banking at the Bank of Tokyo-Mitsubishi UFJ (BTMU), the core unit of MUFG, said in an interview.

BTMU also plans to increase its workforce abroad by as much as 30 percent in the next three years from current staffing of about 10,000, Morimura said.

Japanese lenders, with little exposure to Europe’s troubled sovereign debt, are seen better positioned to snap up assets as European banks retreat.

BTMU plans to increase the share of its overseas earnings to nearly 40 percent of its total gross profit from a little less than 30 percent currently.

TOKYO/HONG KONG (Reuters) – Japan’s MS&AD (8725.T: Quote, Profile, Research) is acquiring New York Life’s 26 percent stake in a joint venture with Max India (MAXI.NS: Quote, Profile, Research) for about $530 million, in another example of Japanese companies’ growing appetite for overseas assets.

MS&AD Insurance Group, Japan’s largest property-casualty insurer by revenue, is among the industry’s most aggressive in expanding in Asia through acquisitions, buying both life and non-life assets to secure growth beyond its weak home market.

A year ago, it bought a 50 percent stake in Indonesia’s PT Asuransi Jiwa Sinarmas for about 67 billion yen.

Now, one of its core units, Mitsui Sumitomo Insurance, has struck a deal for the stake in Max New York Life, India’s largest non-banking private insurance company, for 27.3 billion Indian rupees, the Japanese company said in a statement.

The 26 percent stake is the maximum allowed for foreign ownership in Indian life insurance companies.

The deal would represent a further withdrawal from Asia for New York Life, which recently sold businesses in China, Thailand, South Korea and Hong Kong.

Under the deal, Mitsui Sumitomo will get two seats in the board of the joint venture, which will be renamed Max Life Insurance, the Japanese company said.

TOKYO/HONG KONG (Reuters) – Japan’s MS&AD (8725.T: Quote, Profile, Research) is set to buy New York Life’s 26 percent stake in a joint venture with Max India (MAXI.NS: Quote, Profile, Research) for about $540 million, two sources said on Thursday, signaling the continued appetite of Japanese companies for overseas assets.

MS&AD Insurance Group, Japan’s largest property-casualty insurer by revenue, is among the industry’s most aggressive in expanding in Asia through acquisitions, buying both life and non-life assets to secure growth beyond the weak home market.

A year ago, it bought a 50 percent stake in Indonesia’s PT Asuransi Jiwa Sinarmas for about 67 billion yen.

Now, one of its core units, Mitsui Sumitomo Insurance, is striking a deal with Max New York Life, India’s largest non-banking private insurance company, for about 28 billion rupees, said the sources, who were not authorised to discuss the matter publicly. One source said the deal would be all cash.

The deal would represent a further withdrawal from Asia for New York Life, which recently sold businesses in China, Thailand, South Korea and Hong Kong.

Max India said in a press release on Thursday afternoon that, subject to approvals, Mitsui Sumitomo would be acquiring New York Life’s 26 percent Indian joint venture stake. Max India also called a press conference in New Delhi for Thursday afternoon without specifying an agenda.

Mitsui Sumitomo’s president is in India to attend the conference, one of the sources said.

TOKYO, April 12 (Reuters) – Japan’s MS&AD is close to buying a 26 percent stake in an Indian joint venture between New York Life and Max India for about $540 million, a source said on Thursday, signaling continued appetite of Japanese insurers for overseas acquisitions despite large Thai flood losses.

MS&AD Insurance Group, Japan’s largest property-casualty insurer by revenue, is among the industry’s most aggressive in expanding in Asia through acquisitions, buying both life and non-life assets to secure growth beyond weak home market.

Rival Tokio Marine, taking advantage of its stronger financial fire power, has been bagging bigger and more expensive deals in Europe and the United States, including a $2.7 billion acquisition of U.S. insurer Delphi Financial Group .

Mitsui Sumitomo Insurance, core unit of MS&AD, is close to agreeing to buy New York Life’s 26 percent stake in Max New York Life, India’s largest non-banking private insurance company, for about 28 billion rupees ($544 million), a source familiar with the matter said.

The three are likely to finalise the negotiation as early as on Thursday, said the source, who was not authorised to discuss the matter publicly.

An MS&AD spokesman said nothing has been decided and declined to elaborate further.

For MS&AD, the deal follows the acquisition of a 50 percent stake in Indonesia’s PT Asuransi Jiwa Sinarmas for about 67 billion yen a year ago.

TOKYO (Reuters) – Japan’s lenders are seeing opportunities to grow abroad thanks to the solid health of its financial system while overseas rivals struggle, the new head of the nation’s banking industry lobby said.

Yasuhiro Sato, who became chairman of the Japanese Bankers Association on Sunday, said such a trend is especially pronounced in Asia, where European rivals are reducing lending to protect their capital and ride out a financial storm at home.

“Asia is our home ground. Strategies may differ among banks but it’s definitely a chance to expand our presence there,” he said in an interview with Reuters. Sato is also president and CEO of Mizuho Financial Group (8411.T: Quote, Profile, Research, Stock Buzz).

Mizuho, Japan’s second-largest lender by assets, and major rivals Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) and Sumitomo Mitsui Financial Group (8316.T: Quote, Profile, Research, Stock Buzz) have been enjoying solid growth in their overseas loan balances in recent quarters thanks to strong demand from non-Japanese borrowers.

With little exposure to European sovereign debt, Japan’s major banks are accelerating their overseas push while continuing to see a decline in loans at home amid weak growth prospects.

But at the same time, Sato has been warning against overly optimistic views on the situation and is more cautious than rivals in buying assets unloaded by European banks, saying he wants to be careful not to tie down a lot of cash in long-term assets when liquidity in the global market could dry up instantly at a time of a panic.

For one thing, despite a growing sense of relief following the European Central Bank’s massive liquidity injection into the euro zone banking system, the region’s economy is likely to suffer for a considerable time, Sato said.

TOKYO, March 31 (Reuters) – Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research) plans to make more acquisitions in the United States as Japan’s largest lender looks to ramp up its business overseas, the new head of its core banking unit said.

Nobuyuki Hirano, who becomes president of Bank of Tokyo-Mitsubishi UFJ on Sunday, also wants to beef up currency-related sales and trading in emerging markets in Asia as part of a drive to attract non-Japanese clients.

Japan’s biggest banks, including No. 2 Mizuho Financial Group (8411.T: Quote, Profile, Research) and No. 3 Sumitomo Mitsui Financial Group (8316.T: Quote, Profile, Research), continue to suffer weak loan demand at home as cash-rich corporates remain reluctant to spend due to the country’s weak economic outlook.

“The United States is a big and deep market with growth potential,” Hirano, 60, told Reuters in an interview.

Hirano, currently No. 2 at both MUFG and BTMU, is widely seen following in the path of his predecessor, Katsunori Nagayasu, who become the head of BTMU in 2008 and started doubling as CEO of MUFG two years later.

Under Nagayasu, MUFG in 2008 bought out UnionBanCal Corp, the holding company for California-based UnionBank, and spent $9 billion taking an around 20 percent stake in Morgan Stanley at the height of the financial crisis.

MUFG enhanced its position as the Japanese bank with the biggest presence in the U.S. when UnionBancal earlier this month said it would buy California-based Pacific Capital Bancorp (PCBC.O: Quote, Profile, Research) for about $1.5 billion. [ID:nL4E8EC5CF]