GS

Japan's Mizuho aims to remain a top 10 global investment bank

Credit: REUTERS/TORU HANAI

By Makiko Yamazaki and Ritsuko Shimizu

TOKYO, Feb 21 (Reuters) - Mizuho Financial Group 8411.T aims to stay in the top 10 of the global investment bank league table, its investment banking chief told Reuters, after it became the first Japanese bank to enter the table's upper echelons in more than a decade.

Mizuho ranked 10th in LSEG's investment banking league table last year, benefiting from a lead underwriting role in chip designer Arm's initial public offering and the purchase of U.S. mergers-and-acquisitions (M&A) advisory Greenhill.

The last time a Japanese bank appeared in the top 10 was in 2010, when Nomura Holdings 8604.T placed ninth in a table where top spots are dominated by "bulge bracket" global banks such as Goldman Sachs GS.N and JPMorgan JPM.N.

"We believe we can keep our position in the top 10," Naoki Takahashi, head of Mizuho's global investment banking division, said in an interview. "We want to challenge the dominance of bulge-bracket banks."

Mizuho's investment banking fees, which include fees paid for debt and equity underwriting, M&A advisory and syndicated loans, totalled $1.97 billion last year, up 16% from the previous year.

The acquisition of Greenhill, with its nearly 400 bankers, will help Mizuho expand in U.S. and European M&A markets, the biggest portion of the global investment banking fee pool, Takahashi said, adding that the bank sees room for growth in those markets.

Mizuho's M&A advisory business strategy contrasts with those of domestic rivals Mitsubishi UFJ Financial Group 8306.T and Sumitomo Mitsui Financial Group 8316.T, which partner Morgan Stanley MS.N and Jefferies Financial Group JEF.N respectively through minority investment.

Takahashi said an enhanced M&A advisory platform as a result of the Greenhill acquisition will sharply broaden Mizuho's capabilities for Japanese companies seeking deals abroad and give the bank advantages over rivals.

Japan has seen a surge in outbound M&As recently, including Renesas Electronics' $5.9 billion acquisition of electronics design firm Altium and Nippon Steel's 5401.T$14.9 billion deal for U.S. Steel X.N.

(Reporting by Makiko Yamazaki and Ritsuko Shimizu; Editing by Christopher Cushing)

((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.