Chiba Bank acquires stake in Chiba Kogyo Bank
Chiba Bank has determined, through a resolution of the Board of Directors las week, to acquire the shares of Chiba Kogyo Bank from Ariake Master Fund, and it has entered into a share purchase agreement with Ariake in connection with the Share Acquisition.
Chiba Bank also announced that the Share Acquisition constitutes a “buying up specified by Cabinet Order as being equivalent to a tender offer” prescribed in Article 167, Paragraph 1 of the Financial Instruments and Exchange Act and Article 31 of the Order for Enforcement of the Act.
The Chiba Bank Group has defined its purpose as “to create a local community better suited to bringing each person’s hope to life”, and has been pursuing both organic and inorganic growth opportunities in the current mid-term plan with the aim of further enhancing its corporate value. Under such circumstances, in January 2025, Ariake approached Chiba Bank about the sale of its shares of Chiba Kogyo Bank.
Chiba Bank considers Chiba Kogyo Bank to be one of the regional banks with growth potential and competitiveness. In view of the continuity of the sound functioning of the regional financial system and the sustainability of the services provision to customers, Chiba Bank decided to acquire such shares of Chiba Kogyo Bank.
From the perspective of developing the local economy and enhancing its corporate value, Chiba Bank plans to proceed to discussions with Chiba Kogyo Bank with a view to strengthening the relationship. With Mizuho being the second-largest shareholder of Chiba Kogyo Bank with 15.2% after the Chiba Bank transaction, any discussion of a full merger will require the blessing of the mega bank. Generally, the two company cultures are not seen as compatible.
The combination of Chiba Bank and Chiba Kogyo Bank would form the second-largest regional banking group, only eclipsed by Fukuoka Financial Group. Chiba is one of the rare prefectures still host to three or more regional banks - Keiyo Bank is the third.
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