Mizuho Bank to Acquire Stake in Rakuten Bank

Tokyo, May 20 (Jiji Press)--Mizuho Bank and Rakuten Bank will form a capital and business alliance, with the former set to acquire shares in the latter on Oct. 1, the parent companies of the two Japanese banks said Wednesday.

Mizuho Bank, one of Japan's three megabanks, will have its 14.99 pct equity stake in Rakuten Card Co. swapped with Rakuten Bank shares, according to the announcements by Mizuho Financial Group Inc. and Rakuten Group Inc.

The share swap will give Mizuho Bank a stake of 10.52 pct in Rakuten Bank, an internet bank, in terms of voting right.

The two banks will work together in services for corporate clients, aiming to bolster their earnings from lending and fee business.

Rakuten Group is poised to concentrate its financial operations into Rakuten Bank, which is listed on the Tokyo Stock Exchange's top-tier Prime section.

[Copyright The Jiji Press, Ltd.]