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Through the deal, Mizuho hopes to tap Rakuten Securities’ online brokerage expertise as well as its relatively young clientele at a time of stiff competition for traditional face-to-face brokerage services.
The transaction is expected to take place on Nov. 1, they said.
Japanese e-commerce giant Rakuten faces competition from Amazon.com (NASDAQ:AMZN) and huge losses from building its low-cost mobile communications network. It has outlined plans to raise capital by listing the holding company of Rakuten Securities.
Mizuho rival Sumitomo Mitsui (NYSE:SMFG) Financial Group Inc (SMFG) earlier this year took a 9.9% stake in online financial company SBI Holdings Inc for about 80 billion yen.
($1 = 145.0000 yen)
