Japanese regional lenders Daishi Hokuetsu Financial Group Inc. and Gunma bank Ltd. are in final conversations to establish a holding that will create one of the largest actors in the industry, according to people with knowledge of the matter.
Banks are expected to announce the agreement within a few dayssaid the people, who asked not to be identified because the discussions are confidential. In separate statements, the lenders said they plan to decide on a Fusion agreement in their respective directory meetings on Thursday and make ads shortly after.
The country’s regional banks are attracting market attention to a possible consolidation wave of the sectorgiven the decrease in the population outside the big cities. Last month, Chiba Bank Ltd. acquired a 20% participation in Chiba Kogyo Bank Ltd. to Ariake Capital.
The Japanese station TV Tokyo previously reported that Daishi Hokuetsu and Gunma plan to merge under a holding company in early 2027. Total combined assets of the two lenders are approximately US $ 150,000 million, behind regional bank leaders Fukuoka Financial Group Inc. and Concordia Financial Group Ltd.
