TOKYO--In what would be the biggest ever acquisition by Japan's
top financial services and leasing company, Orix Corp. (8591.TO) is
in final talks to buy Dutch asset manager Robeco from Rabobank for
about $3 billion, people close to the discussions said
Thursday.
An announcement could be made as early as next week, the people
said.
The Dutch bank last year started reviewing its business
strategy, refocusing its efforts on its more traditional
businesses, such as lending to local farmers.
Orix's move would follow a buying spree by Japanese financial
institutions of overseas assets and businesses, particularly those
put up for sale by European players trying to reinvigorate their
balance-sheets.
Helping fuel this desire among Japanese players, who remain
relatively unscathed by Europe's debt crisis, is the enticing
prospect of being able to expand their businesses overseas through
acquisitions and investments as growth at home remains
stagnant.
Last year, for example, Japan's No. 2 lender by market
capitalization, Sumitomo Mitsui Financial Group Inc. (8316.TO)
bought Royal Bank of Scotland Group PLC "s (RBS.LN) aviation
leasing business for about $7.2 billion. Meanwhile, Mizuho
Financial Group Inc. (8411.TO) acquired Brazilian lender Banco
WestLB Do Brasil S.A. from Germany's WestLB AG.
Japan's largest bank, Mitsubishi UFJ Financial Group Inc.
(8306.TO), has purchased some business and loan portfolio from RBS
over the past few years. In 2010, MUFG bought RBS's project finance
team and its loan portfolio worth about GBP3.3 billion in Europe,
the Middle East and Africa and, in the following year, the Tokyo
bank bought RBS's Australia-based infrastructure advisory
business.
Orix has long been active in overseas investments for various
businesses far before the financial crisis in 2008.
The company, which listed on the New York Stock Exchange in 1998
and is over 50% foreign-held, also operates in investment banking,
life insurance, venture capital, financing real-estate development
and is entering niche markets including environment and
energy-related businesses.
Orix also has a track record of acquisitions in the U.S. In
2005, it acquired boutique U.S. investment bank Houlihan, Lokey,
Howard & Zukin for about Y50 billion to help boost its advisory
fee businesses.
In 2010, the firm bought about an 83% stake in Ohio-based Red
Capital Group, a top commercial mortgage originator, and also
acquired Mariner Investment Group, a leading hedge fund and
alternative investment manager based in Harrison, New York.
Orix's President Makoto Inoue said in an interview in 2011 that
his company is looking to buy an asset management firm or an
investment bank, adding the surging yen at that time has helped his
firm ramp up acquisitions abroad.
Dana Cimilluca contributed to this report
Write to Atsuko Fukase at atsuko.fukase@dowjones.com and Kana
Inagaki at kana.inagaki@dowjones.com
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