TOKYO – The Chiba Kogyo Bank Ltd. (8337.T) said on Wednesday it will acquire all outstanding shares in two consolidated subsidiaries, Chiba General Lease Co. and Chiba Kogin Computer Soft Co., as part of a strategic move to strengthen governance and accelerate decision-making across its banking group.
The bank’s board approved the plan to make both companies wholly-owned units, aiming to create a more integrated management structure capable of swiftly addressing evolving customer needs and structural challenges like demographic shifts and digitalization.
“To squarely confront and tackle such diverse challenges and customer expectations, we concluded that it is necessary to further enhance and upgrade the financial and non-financial services provided by our Banking Group,” the bank said in a statement.
The acquisition of shares from other shareholders is set to be completed by mutual agreement within the 2025 fiscal year, which ends in March 2026 for the bank.
Details of the Acquisitions
For Chiba General Lease Co., the bank will acquire 1,710 shares from its major shareholder, Sodegaura Kogyo Co., lifting its direct voting rights ownership from 5.00% to 100.00%. The transaction is scheduled to be finalized by late March 2026.
Chiba General Lease, established in 1982 and engaged in leasing, reported an ordinary profit of 221 million yen for the fiscal year ended March 2025.
For Chiba Kogin Computer Soft Co., a software development firm, the bank will purchase 570 shares from its two main shareholders—Chiba General Lease and Sodegaura Kogyo. This will increase the bank’s direct stake from 5.00% to 100.00%. The share acquisition for this subsidiary is expected to conclude earlier, by late January 2026.
The acquisition price for both deals was not disclosed, citing confidentiality agreements and the intentions of the counterparties. The bank stated the price would be determined through consultation based on valuations from an independent third party.
Minimal Financial Impact Expected
The bank emphasized that since both companies are already consolidated subsidiaries, the impact of the transactions on its consolidated financial performance is expected to be minimal.
The move signals a broader trend among Japanese regional financial groups to consolidate control over their non-banking subsidiaries to streamline operations and enhance group-wide strategic initiatives in the face of a rapidly changing economic landscape.