Japanese brokerage Daiwa Securities Group has struck a capital and business partnership with local credit card company Credit Saison to strengthen their businesses.
The business alliance will enable the two entities to initiate mutual sales of existing products and further expand their customer base.
The companies also agreed to share respective expertise to develop new financial services. They will focus on the development of new payment services, asset building services and expansion of loan business.
In a statement, Daiwa said that the two companies will work together to develop and provide “comprehensive financial services for the next generation, utilising and integrating the financial business knowledge and client networks acquired through their years in securities and credit card business.”
Furthermore, Daiwa will acquire up to 5.01% stake in Credit Saison. The deal is valued at around $84.7m, according to Nikkei Asian Review.
On the other hand, Credit Saison will purchase nearly JPY2bn ($19m) worth of Daiwa shares, representing around 0.3% stake in the brokerage group.
The alliance is fuelled by several factors influencing the business landscape in Japan including technological advancements and increase in life expectancies.
The effect of the tie-up on the financial performance of the two companies is currently under review.
Daiwa believes that the move will boost performance and corporate value for both the companies from a medium to long-term perspective.