Daiwa Securities Group Inc. President Shigeharu Suzuki on Tuesday indicated he is in favor of a merger between Daiwa Securities SMBC Co. and part of Nikko Citigroup Ltd.
Suzuki made his position known as Sumitomo Mitsui Financial Group Inc., which owns 40 percent of Daiwa Securities SMBC, has agreed to acquire the bulk of Nikko Citigroup as well as Nikko Cordial Securities Inc. from Citigroup Inc.
Daiwa Securities Group holds the remaining 60 percent stake in Daiwa Securities SMBC.
“As competition between wholesale securities firms within a group is problematic, we will go ahead with coordination in a positive manner,” Suzuki said in a briefing for investors and reporters. Both Daiwa Securities SMBC and Nikko Citigroup are known as wholesale securities firms.
Officials of Sumitomo Mitsui Financial Group have also said integration is a major option.
Suzuki also said he now sees no chance for a full merger between Daiwa Securities Group’s retail securities business unit and Nikko Cordial.
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