Japan’s Mizuho Financial Group and Dai-ichi Life Insurance Company have signed a memorandum of understanding to club their asset management businesses.
The deal will see Mizuho affiliates Shinko Asset Management and Mizuho Asset Management; the asset management division of Mizuho Trust & Banking; and DIAM Co, a joint venture between Mizuho and Dai-Ichi Life, integrate their services.
The merger, which is expected to complete during the first half of fiscal 2016, will create a new entity which will handle assets worth some JPY50 trillion ($413 billion).
Under the deal, Mizuho will hold 51% stake in the new venture and Dai-Ichi Life will own the rest.
The board of the new entity will be composed of nine directors, with three nominated by each of Mizuho and Dai-ichi Life, in addition to three independent outside directors, the companies said in joint statement.