Japan: Regulator concerns delay bank merger

Two of southwestern Japan’s regional banks will probably delay their merger since they have failed to address antitrust regulators’ concerns. An official announcement is expected from Fukuoka Financial Group and Eighteenth Bank as early as next week after they finalize the details.

The banks are abandoning a clear timetable because they now realize a long period of coordination with the Japan Fair Trade Commission would be necessary to get the green light for their merger.

Post merger, the combined bank would have a share in the prefecture’s loan market totaling an estimated 70% — unprecedented for regional bank consolidations. For this reason, the Japan Fair Trade Commission is concerned that the planned merger could hamper competition in interests and fees by leaving customers in the affected areas with fewer choices.

Full Content: Nikkei

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