Mizuho Financial Group’s securities business will acquire around 20% of shares in Rakuten Securities from its parent Rakuten Group for about 80 billion yen ($554 million), business daily Nikkei reported on Wednesday.
Rakuten has outlined plans to raise capital by listing its securities and banking units as it faces competition from Amazon.com in e-commerce and large losses at its wireless carrier business.
A deal could give Mizuho the opportunity to beef up its digital business. Rival Sumitomo Mitsui Financial Group Inc (SMFG) this year took a 9.9% stake in online financial company SBI Holdings Inc for about 80 billion yen.
A Mizuho spokesperson said that various options regarding cooperation with Rakuten were under consideration but that nothing has been decided. Rakuten did not immediately respond to a request for comment.
The transaction is expected to close around November, Nikkei reported, adding that Mizuho will buy shares held by Rakuten.
Reuters