Mizuho Bank to acquire 10.52% stake in Rakuten Bank through share swap on Oct. 1

Mizuho Financial Group and Rakuten Group announced a capital and business alliance in which Mizuho Bank will swap its 14.99% equity stake in Rakuten Card for a 10.52% voting stake in Rakuten Bank, effective Oct. 1.

Rakuten Group will consolidate its financial operations by making Rakuten Card and Rakuten Securities Holdings wholly owned units of Rakuten Bank, while Mizuho Securities will retain a 49% stake in Rakuten Securities.

The two banks will cooperate on corporate lending and fee businesses, and will rationalize housing loan operations and allow Rakuten Bank customers to withdraw deposits at Mizuho Bank branches during natural disasters. Mizuho Bank aims to serve fund demand from small companies and sole proprietors using the Rakuten Ichiba online marketplace.