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Mizuho Bank, a subsidiary of Mizuho Financial Group, and its wholly-owned subsidiary Defined Contribution Plan Services (DCPS) have announced a merger agreement aimed at enhancing services and operational efficiency in the defined contribution pension sector.
The merger is pending regulatory approval and is part of Mizuho's strategy to address digitalisation challenges and Japan's labour shortage.
As of 31 March 2024, Mizuho Bank led the industry with over 1.79 million participants in its DC pension plans.
With the DC pension market expected to grow, the bank is merging with DCPS to strengthen call centre and online services, and consolidate administrative functions such as HR and accounting.
This absorption-type merger will see Mizuho Bank as the surviving entity, with no exchange of shares or monetary consideration.
Post-merger, Mizuho Bank will maintain its current trade name, head office location, representative's title and name, business activities, and fiscal year.
The bank's capital stands at JPY1,404bn ($9.37bn), with 24,784 employees. DCPS, established in September 2000, provides call centre and online services for DC pension plans, with a capital of 2,000 million yen.
The merger will not impact Mizuho Bank's financial performance as DCPS is a wholly-owned subsidiary.
DCPS's expertise in DC operations is key to advancing Mizuho's DC pension business, according to Mizuho Bank.
After the merger, Mizuho Bank plans to utilise DCPS's knowledge and team to provide more value-added services.
Recently, Mizuho Financial Group agreed to purchase a 14.99% stake in Rakuten Card, a Rakuten Group subsidiary, for around JPY165bn ($1.06bn).
According to the share transfer and shareholder agreements, Rakuten Card will continue as a subsidiary of Rakuten Group within its broader ecosystem.
"Mizuho Bank to merge with Defined Contribution Plan Services" was originally created and published by Retail Banker International, a GlobalData owned brand.
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