Daiwa Securities Expands Lending Footprint with $2.3 Billion Orix Bank Acquisition

Daiwa Securities Group Inc. has announced a definitive agreement to acquire Orix Bank Corp. from Orix Corp. for ¥370 billion, approximately $2.3 billion. The move marks a strategic pivot for the Tokyo-based brokerage, which is seeking to diversify its revenue streams by aggressively expanding its presence in the commercial lending market. This transaction stands as the largest acquisition undertaken by the firm in more than a decade, signaling a bold shift in its growth strategy. By integrating a dedicated banking unit, Daiwa aims to enhance its ability to provide credit and corporate financing to a broader client base. According to a company statement released Monday, Daiwa intends to finance the entire purchase using its own internal funds. This approach avoids the need for external debt financing, reflecting the firm's strong liquidity position. The transaction is expected to close by October. Market observers view this as a significant step in the consolidation of Japanese financial services, as major brokerages seek to integrate banking functions to remain competitive in a challenging macroeconomic environment.