2 Min Read
* There is enough the company can do to grow organically -CEO
* Will continue to look at companies capable of boosting growth (Adds CEO comment, background)
By Thomas Wilson
TOKYO, June 28 (Reuters) - Japan Post Holdings Co can achieve growth via organic means alone, its chief executive said, indicating it was looking to take a cautious approach to mergers and acquisitions after booking a hefty writedown on its Australian logistics arm.
The conglomerate that spans postal delivery, banking and insurance, booked a loss in the year ended March - its first in at least a decade - due to a $3.6 billion writedown on Toll Holdings Ltd that it bought in 2015.
And last week, Japan Post said it was not looking to buy Nomura Real Estate Holdings, with sources attributing this to a failure to agree on a deal value with the target firm's largest shareholder, Nomura Holdings Inc.
"There is enough we can do to achieve growth organically," CEO Masatsugu Nagato said at a press conference on Wednesday.
But Nagato did not rule out mergers and acquisitions, saying Japan Post would continue to consider as takeover targets companies that could contribute to its profitability and growth.
He has previously said the company needed to acquire more businesses in a bid to look beyond postal services to increase its revenue. Japan Post earned 28 percent of its ordinary income in the year to March from its postal services arm.
Eighty percent owned by the Japanese government, Japan Post was partly privatised in 2015. The government is preparing a second offering of shares, but the onus is on Japan Post to convince investors of its growth prospects.
Japan Inc has spent heavily on overseas deals in recent years, often paying huge premiums to tap offshore growth amid dismal prospects at home. But many bets have failed, including high-profile failures of foreign takeovers by Japanese firms such as Toshiba Corp, raising questions about the country's corporate governance reforms. (Reporting By Thomas Wilson; Editing by Himani Sarkar)