is MER next to be acquired????
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, Friday August 20, 12:27 am Eastern Time
(Note: this article is ''in progress''; there will likely be an update soon.)
Japanese banks to form world's biggest financial group
TOKYO, Aug 20 (Reuters) - Three leading Japanese banks, Fuji Bank, Dai-Ichi Kangyo Bank and the Industrial Bank of Japan, said on Friday they would set up a joint holding company by the autumn of next year in a broad alliance that would see their operations integrated by the spring of 2002.
The agreement will create the world's largest financial group with around $1.3 trillion in assets, surpassing the current leader Deutsche Bank AG, which has assets of $735 billion.
The banks said they would divide their operations into retail, corporate and investment banking sections. They will cut a combined 6,000 jobs over five years.
Analysts say the alliance will shore up each of the three banks' weak points but also warn that unless issues of efficiency are tackled aggressively, it may simply become a cumbersome domestic megabank unable to survive in global competition.
The move is seen as positive for Japan's banking industry, still plagued by hefty problem loans, chronic overcapacity and low profitability, as it may prompt other big banks to take much-needed steps towards consolidation.
The news is the latest in a wave of global banking mergers.
In the past year, Deutsche has taken over Bankers Trust Corp in the largest takeover of a U.S. bank by a foreign firm, while in France, Banque Nationale de Paris has been battling to create the world's first trillion-dollar bank by absorbing rivals Paribas and Societe Generale.
Warning: part of the article may be missing at this point.
The three banks said they would have equal ownership of the holding company and would aim for an annual operating profit of over one trillion yen.
They also plan to cut 6,000 jobs over five years, close 150 of their combined 704 branches and consolidate overseas operations as soon as possible.
''The new financial group will, representing Japan, aim to be one of the world's top five players by realising efficiencies in management and bringing together our strengths and special attributes,'' the banks said in a statement.
Dai-Ichi Kangyo Bank president Katsuyuki Sugita, 57, will become the holding company's president and co-chief executive. Fuji Bank president Yoshiro Yamamoto and IBJ's president, Masao Nishimura, will become co-chairmen and co-chief executives. |
