Taiwan-based CTBC Bank’s $530m bid to purchase Tokyo Star Bank has been approved by the Japanese government’s Financial Services Agency (FSA), paving the way for integration of both firms most probably by the end of June 2014.
The FSA started review of the proposed transaction following the formal approval by Taiwan’s Financial Supervisory Commission on 15 April, CTBC Bank was quoted as saying by chinapost.com.tw.
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Earlier, the Investment Commission of the Ministry of Economic Affairs (MOEA) gave its green signal for the merger on 7 May 2014.
In October 2013, CTBC agreed to acquire 98.16% stake in Tokyo Star Bank from the current shareholders including US investment fund Lone Star, in a transaction valued at approximately NT$15.6bn ($530m).
CTBC Financial would be the first foreign lender to take a controlling stake in a Japanese lender following completion of the deal.
After merger, Tokyo Star Bank will concentrate on offering asset management, cross-border financing and investment consultation services.
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By GlobalDataTokyo Star, which was created by Dallas-based Lone Star from Tokyo Sowa Bank, manages a network of 31 branches with the help of more than 1,500 staff across major cities in Japan with a strong presence in the retail market.
