Japan Post Plans Stake in Credit Saison Asset Management

Japan Post Co., the state-owned operator of the country’s 24,000 post offices, agreed to purchase a 40 percent stake in Credit Saison Co.’s asset-management unit and form a capital alliance.

Japan Post will invest about 800 million yen ($7.3 million) in Saison Asset Management Co., Toru Takahashi, president of the mail company, said at a news briefing in Tokyo today.

The deal will help Saison Asset boost its money pool to 1 trillion yen from the current 96 billion yen, the companies said in a statement, without giving a timeframe. Japanese asset managers are seeking customers who are looking to shift from cash deposits to higher-yielding investments as inflation emerges in the world’s third-largest economy.

“Saison Asset Management’s products are highly compatible with what post offices offer,” Takahashi said. The alliance will help Japan Post expand its client base, he added.

Under the alliance accord, Japan Post, Credit Saison and Saison Asset will team up on expanding investment trusts for Japanese customers, including younger people, according to the statement. The companies plan to hold seminars at post offices to promote Saison Asset’s products, it said.

The mail company is a unit of Japan Post Holdings Co., which also has insurance and banking arms and is preparing for an initial public offering next year. The government plans to use the proceeds to help pay for reconstruction work following the 2011 earthquake and tsunami in northeastern Japan.

Credit Saison, based in Tokyo, provides credit-card, leasing and real-estate services, and has 3,700 employees, according to its website.

Before it's here, it's on the Bloomberg Terminal.