Japan anti-trust watchdog to approve Daishi, Hokuetsu banks' merger -Nikkei (updated)
15/12/2017 05:31
* Deal had been delayed by prolonged review
* Japan antitrust regulators at odds with FSA over
consolidation
* FTC still looking at Fukuoka deal
(Adds background, another delayed merger plan)
TOKYO, Dec 15 (Reuters) - Japan's Fair Trade Commission has
decided to approve the merger of regional banks Daishi Bank Ltd
8324.T and Hokuetsu Bank Ltd 8325.T after a prolonged
review, the Nikkei business daily reported on its website,
without citing sources.
The two banks, both based in Niigata prefecture on the Sea
of Japan coast, in October postponed their original merger plans
by six months to October 2018 as the commission carried out a
lengthy review.
A shrinking population and the central bank's negative
interest-rate policy have created a tough business environment
for Japan's roughly 100 so-called regional banks, prompting some
to merge or take other steps to shore up their
operations. urn:newsml:reuters.com:*:nL3N1HD0VX
The Financial Services Agency, which oversees the banking
industry, has said consolidation was an option, while the
antitrust commission has been concerned about hurting
competition in regional prefectures. urn:newsml:reuters.com:*:nL3N1NU2CI
The Fair Trade Commission has also been holding up plans by
Fukuoka Financial Group Inc 8354.T to buy Eighteenth Bank Ltd
8396.T , both based in southern island of Kyushu. It was
concerned a deal would undermine competition and limit options
for customers, according to sources. urn:newsml:reuters.com:*:nL3N1KG2AU
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Japan's Daishi, Hokuetsu to merge in latest bank consolidation
urn:newsml:reuters.com:*:nL3N1HD0VX
Ex-Japan competition official questions regional bank
consolidation urn:newsml:reuters.com:*:nL3N1NU2CI
Japan's Fukuoka, Eighteenth Bank postpone planned integration
urn:newsml:reuters.com:*:nL3N1KG2AU
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(Reporting by Junko Fujita; Editing by Chang-Ran Kim and
Christopher Cushing)
((813-6441-1840, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))
Keywords: JAPAN BANKS/DAISHI BANK HOKUETSU BANK