Daiwa Securities Group Inc. will consider acquiring “strong boutique” firms in mergers and acquisitions, as it joins rivals in betting on an eventual dealmaking rebound while seeking to boost its presence in the US.
Japan’s second-biggest brokerage plans to boost revenues from that business by about 50% or more and add 250 people in M&A over the coming eight years, according to a presentation Wednesday.
The statement is the latest from a Japanese financial institution to signal intent to scale up dealmaking overseas. Mizuho Financial Group Inc. is forging further into US investment banking through a deal to buy Greenhill & Co., while Sumitomo Mitsui Financial Group Inc. last month agreed to triple its stake in Jefferies Financial Group Inc.
Read More: Wall Street Deals Show Unfulfilled Ambition of Japan’s Megabanks
Under Chief Executive Officer Seiji Nakata’s leadership, Daiwa has been working to strengthen its mid-cap merger advisory business. It has already acquired two US boutiques and has a foreign network of about 500 bankers targeting smaller deals.
The brokerage and its larger rival Nomura Holdings Inc. are facing weak revenues from dealmaking, with banking crises in the US and Europe the latest troubles to weigh on client sentiment. Nomura earlier this month cut its profit targets and announced a business review to revive profitability.
