Nomura Securities Co. is moving to end its capital alliance with U.S. investment bank Wasserstein Perella & Co., under which they have advised corporate clients on mergers and acquisitions, Nomura officials said Tuesday.
Nomura is to enter the final phase of talks with Wasserstein on discharging the equity stakes the two institutions have in each other as soon as it works out the details of its capital dissolution plan, the officials added.
In 1988, Nomura established a joint venture with Wasserstein in Japan to push the M&A business, while purchasing a 20 percent equity stake in the Wall Street investment bank.
Under the deal, Wasserstein also acquired a 20 percent equity stake in the venture, Nomura Wasserstein Perella Co.
Nomura appears to be intent on ending the capital alliance as it believes the two have already traded sufficient levels of knowhow regarding M&A, securities industry analysts said.
Nomura’s policy focus will shift to the issue of how to cash in on its accumulated M&A expertise more efficiently, the analysts added.
It is considering selling its 20 percent stake in Wasserstein Perella back to the investment bank, while buying back the 20 percent stake Wasserstein has in the joint venture, the Nomura officials said.
Nomura is also contemplating entering a new alliance with other foreign financial institutions in connection with the M&A business, they added.
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