TOKYO, May 14 (Reuters) – Japanese banks’ profits are likely
to fall this business year from last when stock-related gains
sent earnings soaring, but the overseas reach of Mitsubishi UFJ
Financial Group Inc (MUFG) will ensure the biggest
lender by assets loses out the least.
MUFG will boost profit with its 20 percent stake in U.S.
bank Morgan Stanley and near three-quarter ownership of
Thailand’s fifth-largest lender, while Mizuho Financial Group
Inc and Sumitomo Mitsui Financial Group Inc (SMFG)
contend primarily with a dim outlook for local lending.
TOKYO, May 8 (Reuters) – Suntory Holdings Ltd
aims to raise more than 800 billion yen ($8 billion) in debt to
finance its purchase of U.S. spirits company Beam Inc, Japan’s
third-biggest outbound deal ever, people with knowledge of the
deal said on Thursday.
The privately held beverage company is tapping a range of
lenders to buy senior and subordinated loans in yen and dollars,
as well as dollar bonds, to ensure longer-term funding of its
recently completed $13.6 billion purchase of the maker of Jim
Beam and Maker’s Mark bourbons, the people said.
TOKYO, April 28 (Reuters) – Japan’s Orix Corp has
agreed to buy Hartford Financial Services Group’s
Japanese unit for $895 million as part of efforts to expand its
life insurance business in the world’s third-largest economy.
Orix is one of the most acquisitive Japanese financial
companies, saying last week it would buy a precious metal and
jewellery recycler from Baring Private Equity Asia in a deal
sources priced at around 21 billion yen ($204.7 million). Last
year, it spent about $2.6 billion on Dutch asset manager Robeco.
TOKYO (Reuters) – Scandal-hit Mizuho Financial Group (8411.T: Quote, Profile, Research, Stock Buzz) has nominated former economy minister Hiroko Ota as chairwoman, as Japan’s second-largest bank strives to improve corporate governance by bringing in more outsiders.
Mizuho shareholders will vote on the nomination in June after which Ota, 60, could become one of the highest-ranking women in an industry which only recently started to appoint female executive officers.
TOKYO (Reuters) – Japan’s Kyushu Electric Power Co has become the second nuclear generator to seek state support this week as reactors across the country remain idled and industry losses mount three years after the Fukushima nuclear disaster.
Kyushu Electric, a regional monopoly that supplies power in southern Japan, said on Wednesday it was in talks with state-owned Development Bank of Japan for financial backing. On Tuesday, a source said Hokkaido Electric Power Co, which supplies Japan’s northernmost island, had asked the same bank for financial assistance.
TOKYO, April 1 (Reuters) – Japan’s Hokkaido Electric Power
Co, facing a third year of financial losses, is seeking
a capital infusion from a state-owned lender, a source with
knowledge of the matter said on Tuesday.
If successful, Hokkaido Electric would be the second nuclear
operator to receive a government bailout since the Fukushima
crisis in 2011. Japanese media earlier reported that the utility
will get the bailout.
TOKYO, April 1 (Reuters) – Japan’s biggest banks must do
more to involve smaller peers when seeking partners to finance
overseas projects, to support a regional banking sector facing
an uncertain future without a wider pool of borrowers, Japan’s
new banking head said.
Many of Japan’s more than 100 local banks have long been
stuffed with deposits but starved of loan customers caused by
two decades of economic stagnation – a state the government, in
office since December 2012, has promised to end.
LONDON/TOKYO (Reuters) – Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz) has had contact regarding the possible sale of its U.S. retail business Citizens with Sumitomo Mitsui Financial Group (8316.T: Quote, Profile, Research, Stock Buzz) while Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) has also considered a bid, people with knowledge of the matter said.
RBS, which is 81 percent owned by the British government, said in November it would speed up a planned stock market flotation of Citizens in New York, aiming to start the process in the second half of 2014 and to fully sell the business by the end of 2016.
HONG KONG (Reuters) – Japan Bank for International Cooperation (JBIC) and Sumitomo Mitsui Trust Bank said they have agreed to invest in CVC Capital Partners Ltd’s CVC.UL fourth Asian fund, which is seeking to raise around $3 billion.
The agreement is the first investment in a traditional private equity buyout fund for JBIC, and comes as Japanese banks and insurers increasingly look overseas for opportunities as they battle slow growth in their home markets.
TOKYO (Reuters) – Japan has too many regional banks, and they must consider consolidating in order to prosper as the nation’s population shrinks and deposits dwindle, a top regional banker said.
“Thinking long term, population decline is the biggest challenge,” said Masaaki Tani, chairman of the Regional Banks Association of Japan, which represents 64 of the 100 regional institutions.