Japan’s financial regulator has given its approval to Taiwan’s CTBC Bank’s (中信銀行) acquisition of Tokyo Star Bank Ltd, CTBC Financial Holding Co (中信金控) said in a statement yesterday.
The green light from Japan came after Taiwan’s Financial Supervisory Commission on April 15 approved CTBC Bank’s acquisition of Tokyo Star for ￥53 billion (US$519.4 million).
Tokyo Star is a second-tier regional bank in Japan with 31 branches and more than 1,500 employees.
The deal marks the first takeover of a Japanese commercial lender by a foreign bank, and CTBC Financial hopes the acquisition will help develop its wealth-management business and regional banking services in the world’s third-largest economy.
The Taiwanese firm is looking for opportunities to increase its earnings through expansion into international markets via the acquisition of overseas targets, as its home market becomes saturated.
In the statement, CTBC Financial said it would start processing share purchase from current shareholders in Tokyo Star. Major stakeholders in Toky Star include Lone Star Funds of the US, Japan’s Shinsei Bank Ltd and France’s Credit Agricole SA.
The company also said Tokyo Star would keep its name following the completion of the acquisition.
CTBC Financial shares closed 1.04 percent lower at NT$19.1 on Friday last week in Taipei trading.
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