Two local Japanese lenders in Osaka and nearby Shiga prefectures are poised to merge to create the biggest regional banking group in Kansai region, according to people familiar with the matter. Senshu Ikeda and Shiga Bank are in talks to consolidate their operations, with an announcement expected to come as soon as next week, said the people, who asked not to be identified discussing a private matter. Nikkei reported the news first.
Both banks confirmed the talks in exchange filings late Friday but added that nothing has been decided. The move came after a capital and business alliance between the two firms in April, in which they took a small stake in each other. Senshu Ikeda and Shiga have been in the spotlight after Japanese hedge fund Ariake Capital took 10.8% and 6.48% stakes in them, respectively.
The combined assets of the two lenders will amount to ¥14.6 trillion ($93.1 billion), making them the biggest regional banking group in the Kansai region, surpassing Kyoto Financial Group Inc. Shares of Shiga have rallied 73% this year while Senshu Ikeda’s stock is up 17%.
Extract — continue reading at the source.
