Articles/Columns
Nomura Is Looking to Acquire a Unit of GE Capital in China
According to reports by the Wall Street Journal (WSJ) and Reuters, Nomura Holdings Inc. is set to acquire a unit of GE Capital (as part of General Electric Co.) in China. GE Capital currently has nine office locations in China with more than 150 financial-services professionals, and their business focus includes commercial lending (using assets as collateral) and supporting global clients and products in the Chinese markets, as reported by the WSJ. This deal would allow Nomura to strengthen their market position in China, where they currently have representative offices in Beijing and Shanghai. Nomura would first have to win approval by the regulators in China and then apply for the appropriate licenses to conduct financial transactions; so it could take some time before any benefits can be realized for Nomura. This expansion into China follows accordingly to Nomura's expansion strategy in Asia, highlighted by their bold acquisition of Lehman Brothers' Asian business during the height of the financial crisis. Considering Nomura's market position as the leading investment bank in Japan, they are well-positioned to be one of the leading investment banks in the Asian markets, as this region continues to develop and mature. Having a strong presence in China is paramount to being able to have both expertise and leadership for Asia as a whole, so the news of this pending deal reflects both the necessity and expectation for Nomura to establish a strong presence in China. These reports came out just a few weeks after the share price of Nomura Holdings hit an all-time low of \262 per share (within the foreseeable past 5 years) on October 5th.
Nomura Holdings, Inc Share Price (past 5 years)
Source: Bloomberg
Nomura Holdings, Inc Share Price (past 1 month)
Source: Bloomberg
（2011/10/24 掲載）