TOKYO (Reuters) – Mizuho Financial Group’s securities unit will acquire a 19.99% 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’ 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 Nov. 1, they said.
Japanese e-commerce giant Rakuten faces competition from Amazon.com and huge losses from building its low-cost mobile communications network. It has outlined plans to raise capital by listing the holding company of Rakuten Securities.
Mizuho rival Sumitomo Mitsui Financial Group Inc (SMFG) earlier this year took a 9.9% stake in online financial company SBI Holdings Inc for about 80 billion yen.
($1 = 145.0000 yen)
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(Reporting by Makiko Yamazaki; Editing by Chang-Ran Kim)