TOKYO Mizuho Financial Group's securities unit will acquire a 19.99 per cent stake in Rakuten Securities from its parent Rakuten Group for 80 billion yen $552 million to beef up its online brokerage business, the companies said on Friday.
Through the deal, Mizuho hopes to tap Rakuten Securities'Rakuten Securities' online brokerage expertise as well as its relatively young clientele at a time of stiff competition for traditional face-to- face brokerage services.
The transaction is expected to take place on November 1, they said.
The Japanese e-commerce giant Rakuten is facing competition from Amazon.com and huge losses from building its low-cost mobile communications network. The holding company, Rakuten Securities, is set to raise capital by listing the holding company.
Mizuho rival Sumitomo Mitsui Financial Group Inc. SMFG took a 9.9 per cent stake in online financial company SBI Holdings Inc earlier this year for about 80 billion yen.