Aozora Bank and Shinsei Bank plan merger

by Richard Kilner

Story link: Aozora Bank and Shinsei Bank plan merger

Aozora Bank Ltd. and Shinsei Bank, Limited, have agreed to undergo a merger of equals, subject to approval from shareholders expected to occur in 2010.

In addition a number of conditions will require satisfying, and regulatory green lights will also be necessary to permit the merger to go ahead.

The two banking institutions have executed an alliance agreement following the approval of the Boards of Directors for the proposed merger.

Should the move occur, the resulting financial entity would have 18 trillion yen (on an aggregated basis) and become Japan’s sixth largest bank.

Norito Ikeda is thought to be the likeliest candidate to assume the roles of president and CEO of the combined banking group.

Ikeda is a former president of Ashikaga Bank and presently works as a special adviser to AT Kearney K.K.