Orix Climbs After $2.6 Billion Deal to Buy Robeco: Tokyo MoverShigeru Sato and Takako Taniguchi
Orix Corp. rose the most in two weeks in Tokyo trading after the Japanese financial company agreed to buy Rabobank Groep’s asset-management unit for 1.94 billion euros ($2.6 billion) in its largest-ever acquisition.
The shares climbed as much as 4.3 percent, their biggest intraday gain since Feb. 4, and traded 3 percent higher at 10,640 yen as of 10 a.m. local time. The benchmark Topix Index advanced 0.9 percent.
Orix said yesterday that it will purchase 90 percent of Robeco Groep NV, gaining a Dutch mutual-fund brand that dates to 1929 as well as Chicago-based Harbor Capital Advisors. The Tokyo-based company, which also manages Japan’s Buffaloes baseball team, is buying financial firms to expand abroad as deflation and a falling population limit opportunities at home.
“This is a very good acquisition,” said Shiro Yoshioka, an analyst at Japaninvest Group Plc in Tokyo, who has a buy rating on Orix. “Even as it’s a substantial purchase, Robeco’s asset-management business will help Orix expand in the financial industry.”
The deal will give Orix control of an asset manager with growing earnings and 189 billion euros of assets as of the end of last year. Chief Executive Officer Yoshihiko Miyauchi said the company is looking for more acquisitions.
“We should be able to go for another sizable deal in the coming year,” Miyauchi told reporters in Tokyo yesterday. He said he expects to see opportunities in Southeast Asia and South America, where the company opened a Brazilian unit to seek acquisitions in September.
The purchase is the largest overseas acquisition announced by a Japanese company since mobile-phone operator Softbank Corp. said it would pay $20.1 billion for control of Sprint Nextel Corp. on Oct. 15.
Rabobank, the biggest Dutch savings bank and mortgage lender, will retain 10 percent of Robeco and receive as much as 150 million euros of Orix shares, Orix said in yesterday’s statement. Rabobank is shedding units to help strengthen its finances amid slowing asset growth and competition for deposits in the Netherlands.
Orix was advised by Goldman Sachs Group Inc., it said in the statement. Rabobank and Robeco were advised by Barclays Plc. and JPMorgan Chase & Co. respectively.