
The Bank of Yokohama headquarters building is seen in March 2022.
9:00 JST, January 27, 2023
TOKYO (Jiji Press) — Bank of Yokohama, operating chiefly in Kanagawa Prefecture, plans to acquire Kanagawa Bank, a second-tier regional bank based in Yokohama, according to informed sources.
Bank of Yokohama, part of Concordia Financial Group Ltd., hopes to take full control of Kanagawa Bank through a tender offer, the sources said. The acquisition is expected to be worth several billions of yen.
The takeover plan will be announced in early February at the earliest, according to the sources.
In a statement released Thursday, Concordia Financial Group said it is true that Bank of Yokohama is considering a tender offer to acquire 100% ownership of Kanagawa Bank.
As of the end of March 2022, Bank of Yokohama was the fourth-largest shareholder of Kanagawa Bank, holding an equity stake of 7.76%.
Kanagawa Bank is believed to have agreed to the tender offer plan, according to the sources.
The revenue base of Japanese regional banks has been hurt by prolonged low interest rates and falling population in the country. Bank of Yokohama and Kanagawa Bank, both being Kanagawa-based banks, hope to work together to survive in such harsh environment including by sharing their business management knowhow and streamlining their operations.
Efforts to integrate operations among regional banks within the same prefecture are spreading across Japan.
"Business" POPULAR ARTICLE
-
5-Kilogram Bag of Rice Price Falls Below ¥4,000: 1st Time in 4 Months
-
Japan to Collaborate with 3 European Countries on Infrastructure Development; Will Work With Romania, Bulgaria, Czech Republic to Build Railroads, Energy Systems
-
EU Proposes Eel Trade Restriction Despite Japan’s Opposition
-
Trump Complains about Japan’s Rice Policy
-
Inbound Tourism Fuels Land Price Surge Across Japan; High Hopes for Development Projects Ahead
JN ACCESS RANKING
-
5-Kilogram Bag of Rice Price Falls Below ¥4,000: 1st Time in 4 Months
-
Japan to Collaborate with 3 European Countries on Infrastructure Development; Will Work With Romania, Bulgaria, Czech Republic to Build Railroads, Energy Systems
-
EU Proposes Eel Trade Restriction Despite Japan’s Opposition
-
Typhoon Nari Approaching Japan’s Kanto Region; Heavy Rain, Strong Wind Expected on Monday
-
Over 300 Earthquakes Rumble in Sea Off Japan’s Kagoshima Pref. Islands, Putting Residents on Alert