2 Regional Banks in Central Japan Call Off Merger

Nagoya, Sept. 10 (Jiji Press)--Aichi Financial Group Inc. in Aichi Prefecture, central Japan, and San ju San Financial Group Inc. in neighboring Mie Prefecture said Thursday that they have agreed to terminate a basic agreement on their merger.

Though they had been negotiating the merger scheduled for April 1, 2027, they concluded that reaching a final agreement expected for the end of this month would be difficult because there were differences in their views on the direction of a new holding company.

Both groups made the decision at their respective board meetings Thursday.

"There were differences over various points," Aichi Financial Group President Yukinori Ito said at a joint press conference. The group owns Aichi Bank, which was created through the merger of the former Aichi Bank and Chukyo Bank in January.

"We will strengthen our current management system instead," Ito said at the press conference in Nagoya, the capital of Aichi. He also hinted at the possibility of future negotiations.

[Copyright The Jiji Press, Ltd.]