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Japan Post to drop talks to buy Nomura Real Estate - Nikkei
June 17, 2017 / 6:32 AM / 5 months ago

Japan Post to drop talks to buy Nomura Real Estate - Nikkei

TOKYO (Reuters) - Japan Post Holdings Co (6178.T) will probably scrap talks to buy Nomura Real Estate Holdings Inc (3231.T) as the two companies struggle to agree on the terms, the Nikkei business daily reported on Saturday.

File Photo - A man holding an umbrella walks past a logo of Japan Post Group at its headquarters in Tokyo February 18, 2015. REUTERS/Yuya Shino

The potential deal was first reported by public broadcaster NHK in mid-May, pushing Nomura Real Estate’s shares up by 20 percent.

The Nikkei reported last week that Japan Post planned to slow the pace of future acquisitions, shifting away from its earlier aggressive investment strategy as it smarts from losses over its purchase of Australian logistics company Toll Holdings.

Japan Post was not available for comment outside office hours.

The company announced a $3.6 billion writedown at Toll in April, just two years after the $4.9 billion takeover.

A source familiar with Japan Post’s talks with Nomura told Reuters in May that one option would be for Japan Post to buy a majority stake in the real estate firm in a deal likely to be worth several billion dollars.

Reporting by Chang-Ran Kim; Editing by Paul Tait

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