Japan Post Holdings Co. is expected to call off plans to acquire Nomura Real Estate Holdings Inc. because they can’t agree on the acquisition price and other conditions, sources said Saturday.
Japan Post will likely have to review its strategy of turning to real estate to offset the decline in delivery volumes caused by the internet.
Japan Post wanted to acquire know-how to more effectively utilize its many post offices and other properties nationwide. It logged a huge loss in the year to March linked to Australian logistics arm Toll Holdings Ltd., which was acquired in 2015 to expand overseas operations.
Investors and lawmakers have called on Japan Post to exercise caution in pursuing Nomura Real Estate.
Japan Post, formerly a government agency, was nominally privatized in 2007. It was listed on the Tokyo Stock Exchange in 2015 with subsidiaries Japan Post Bank Co. and Japan Post Insurance Co.
The government, which holds around 80 percent of Japan Post Holdings, plans to sell part of its stake in batches in fiscal 2022 but keep more than a third of the shares.