Aichi Financial Group and San ju San Financial Group to Merge
Aichi Financial Group (TYO:7389) and San ju San Financial Group (TYO:7322) will create a regional banking group with total assets worth more than 11.6 trillion yen, based on a basic agreement signed on Wednesday.The two companies aim to complete the business integration through an absorption-type merger by April 1, 2027, following the execution of a definitive agreement in September 2026 and shareholder approvals in December 2026.The merger is driven by the need to respond to Japan's declining population, the transition to a "world with interest rates," and intensifying competition from IT and digital technologies.The companies will maintain their separate bank brands after integration, operating under a two-brand structure.The merger remains subject to obtaining necessary approvals from relevant regulatory authorities, and the merger ratio will be determined later based on due diligence and third-party valuation.