Fidea Holdings, Tohoku Bank Cancel Biz Integration
Morioka/Tokyo, Feb. 10 (Jiji Press)--Japanese regional bank group Fidea Holdings Co. <8713> and Tohoku Bank <8349>, also a local lender, said Thursday that they have decided to cancel their business integration planned for October.
The two, both operating mainly in the Tohoku northeastern region, now see the integration difficult due to discords in their thinking about business strategy and corporate governance.
Tohoku Bank President Naoto Murakami, in a press conference at the bank's headquarters the same day, revealed that the two companies had terminated their talks before the final agreement envisioned for this month.
"There was a difference between the views of Fidea Holdings, which emphasizes a growth strategy in a wide area, and Tohoku Bank, which emphasizes a locally focused strategy," Murakami said. "We could not understand and share the other's strategy and system."
"Our strategy is to utilize our strength as a holdings company to reach a wide area, while Tohoku Bank has a strategy of independent management with close ties to local communities. So we disagreed," a Fidea official said.
[Copyright The Jiji Press, Ltd.]