Shizuoka Financial, Bank of Nagoya Reach Merger Deal

Tokyo, March 27 (Jiji Press)--Shizuoka Financial Group Inc., the parent of Shizuoka Bank, and Bank of Nagoya said Friday that they have reached a basic agreement to merge operations in April 2028.

Shizuoka Financial will take full control of Bank of Nagoya through an equity swap, placing both banks under its umbrella. The merger will create Japan's fourth largest regional banking group, with about 22,113.8 billion yen of combined assets based on figures from the end of last year.

"To sustainably enhance our corporate value, it is the best option for us to strengthen regional finance through aggressive management integration," Shizuoka Financial Group President Hisashi Shibata told a press conference in Tokyo.

"Considering the future, I thought we should take a step forward," Bank of Nagoya President Ichiro Fujiwara said at the press conference, apparently mindful of changes in the business environment on the back of interest rate hikes by the Bank of Japan.

Shizuoka Bank is based in Shizuoka Prefecture, and Bank of Nagoya in Aichi Prefecture, a central Japan region that hosts many manufacturing companies. The two banks formed a comprehensive business alliance in April 2022.

[Copyright The Jiji Press, Ltd.]