Daiwa Next Bank has agreed to acquire ORIX Bank Corporation from ORIX Corporation for ¥370 billion, in one of the largest Japanese banking transactions announced this year. The deal, disclosed on 27 April 2026, will see Daiwa Next Bank take 100% of ORIX Bank, equivalent to 1,200,000 shares, from its long-standing owner.

Daiwa Next Bank is a consolidated subsidiary of Daiwa Securities Group, and the acquisition is designed to broaden the securities firm's lending capacity and deposit-taking footprint. The initial agreed price of ¥370 billion is subject to customary closing adjustments, and completion is scheduled by October 2026, according to the parties. Based on prevailing exchange rates, the transaction is worth approximately $2.3 billion, according to Bloomberg.

A ¥370 BILLION LENDING BET

For Daiwa, absorbing ORIX Bank's balance sheet significantly enlarges the operations of Daiwa Next Bank, which until now has been oriented largely toward internet deposits linked to Daiwa Securities' brokerage customer base. ORIX Bank has spent years building a niche in mortgage lending, corporate loans and structured finance for clients associated with the wider ORIX group, and that book will now sit within a securities-led banking platform.

By combining ORIX Bank's lending platform with Daiwa Next Bank's deposit franchise, Daiwa Securities Group is aiming to build a fully fledged banking arm capable of competing with the megabanks in selected segments. Executives at Daiwa have previously signalled that expanding lending is essential to reduce the group's reliance on volatile market-related revenue and to make more efficient use of client deposits that were, until now, largely reinvested in Japanese government bonds and short-dated instruments rather than deployed into loans.

The ¥370 billion consideration reflects the value that Daiwa places on that lending franchise, and on the licences and infrastructure that go with it. The final price remains subject to adjustments before completion, meaning the ultimate figure could differ from the headline number depending on the state of the target's balance sheet at closing.

ORIX EXITS BANKING TO FOCUS ELSEWHERE

For ORIX, the disposal marks a strategic retreat from deposit-taking. The conglomerate has been reshaping its portfolio around asset management, insurance, renewable energy and private equity, and has previously signalled that the returns available from its banking subsidiary no longer justify the capital tied up in it. Selling ORIX Bank frees capital that management can redeploy into what it considers higher-growth businesses inside and outside Japan.

ORIX said in its announcement that the sale reflected a review of its financial services portfolio and that the transaction would be earnings-accretive after closing. The company did not disclose the accounting gain on disposal, saying that the final figure would depend on price adjustments at completion. Investors will look to ORIX's subsequent quarterly disclosures for a firmer indication of the impact on group earnings and capital.

The deal remains subject to approvals from Japan's Financial Services Agency and other regulators. Neither party expects material antitrust obstacles, given the limited overlap between ORIX Bank's lending activities and Daiwa Next Bank's deposit-oriented business. If completed on schedule by October 2026, the transaction will rank among the largest sales of a Japanese bank in recent years and reinforce the wave of consolidation running through the country's mid-tier banking sector as institutions adjust to a positive interest rate environment.