Japan's FTC likely to approve Fukuoka, Eighteenth Bank merger as early as August
01/08/2018 07:48
TOKYO, Aug 1 (Reuters) - Japan's Fair Trade Commission is
likely approve the merger of regional banks Fukuoka Financial
Group Inc 8354.T and Eighteenth Bank Ltd 8396.T as early as
this month, a source with direct knowledge of the matter told
Reuters on Wednesday.
Japan's Financial Services Agency has been promoting
consolidation of regional banks as they struggle with weak loan
demand and margin pressure from the Bank of Japan's negative
rates policy.
But the anti-trust watchdog, the FTC, had prevented the
transaction from proceeding over anti-monopoly concerns.
urn:newsml:reuters.com:*:nL3N1KG2AU
The Nikkei business daily earlier reported the FTC was
nearing approval, lifting shares in the two banks by more than 8
percent.
Fukuoka Financial Group wants to merge Eighteenth Bank with
its Shinwa Bank unit. The combined entity would control more
than 70 percent of lending on Japan's southern-most main island
of Kyushu.
The FTC said it could not comment on cases under review.
Representatives of the two banks declined to comment.
The two banks have been considering offloading loans to
other lenders after they were told by the FTC to take measures
to reduce their market share in April, the source said on the
condition of anonymity.
They have approached around 20 other lenders, with the total
amount offloaded to top 100 billion yen ($892.6 million). Bank
of Saga Ltd 8395.T and Kagoshima Bank have shown interest,
according to the source.
($1 = 112.0300 yen)
(Reporting by Takahiko Wada; Writing by Sam Nussey; Editing by
Stephen Coates)
((sam.nussey@thomsonreuters.com; +81364411596; Reuters
Messaging: sam.nussey.thomsonreuters.com@reuters.net))