Sept. 26 (Bloomberg) -- Daiwa Securities Group Inc., Japan’s second-largest brokerage, said it will form an acquisition-finance venture with Aozora Bank Ltd. and agreed to expand their relationship, mainly in Asia.
The companies will set up Aozora Daiwa Finance Co. in October to offer loans to Japanese companies that are seeking to make acquisitions, the firms said in a joint statement filed to the Tokyo Stock Exchange.
The business will start operating around December, aiming to provide about 20 billion yen ($262 million) of loans, the banks said. It will “provide M&A finance for an anticipated increase in the number of management buyout-related transactions going forward,” they said in the statement.
Daiwa shares fell 7 yen, or 2.5 percent, to 276 yen in Tokyo today. Aozora dropped 2 yen, or 1.2 percent, to 164 yen.
--Editors: Russell Ward, James Gunsalus
To contact the reporters on this story: Takahiko Hyuga in Tokyo at firstname.lastname@example.org; Takako Taniguchi in Tokyo at email@example.com
To contact the editor responsible for this story: Chitra Somayaji at firstname.lastname@example.org