Japan's Daiwa Next Bank Agrees to Acquire ORIX Bank for ¥370 Billion

Daiwa Next Bank has agreed to acquire ORIX Bank Corporation from ORIX Corporation for ¥370 billion, in Daiwa Securities Group's largest acquisition in almost two decades, according to Bloomberg. 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 Bloomberg described the acquisition as a push to expand the group's lending. The initial agreed price of ¥370 billion is subject to price adjustments set out in the share transfer agreement, 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

ORIX Bank had total assets of about ¥3.1 trillion at 31 March 2025, against about ¥6.9 trillion for Daiwa Next Bank at 31 March 2026; Daiwa Next Bank began operating in 2011 as a gateway to the group's securities business. ORIX Bank has spent years building a niche in real estate investment loans to individual investors, where it holds a leading market share, and in corporate loans to sectors such as renewable energy and logistics facilities.

Daiwa said it was seeking a 'virtuous cycle' of deposit and loan growth by integrating Daiwa Next Bank with ORIX Bank, as higher interest rates make lending more profitable in Japan.

ORIX EXITS BANKING TO FOCUS ELSEWHERE

ORIX said the banking industry was entering a period of structural change, driven by the shift to higher interest rates and by intensifying cross-sector competition amid digitalisation. ORIX has set targets for 2035 of a 15% ROE and ¥1 trillion of net income, and is working to improve capital efficiency by expanding its asset management business.

ORIX said Daiwa Securities Group was the ideal partner to enhance ORIX Bank's corporate value as it develops into a comprehensive banking group, and that it expects to book a gain on the sale of approximately ¥124.2 billion (before tax) in the fiscal year ending 31 March 2027. The final gain will depend on price adjustments at completion.