SMBC, Yahoo Japan to Tie Up in Online Banking Operations: Report

By Kyodo News International, Tokyo

Mar. 29–TOKYO — Sumitomo Mitsui Banking Corp. and Yahoo Japan Inc. are in final talks over a proposed capital and business alliance in online banking operations, a Japanese business daily reported Wednesday.

The partnership, the first between a megabank and a major Internet business, is expected to be announced by the end of the week at the earliest, the Nihon Keizai Shimbun said.

SMBC and Yahoo Japan are to set up a joint venture as early as this autumn to buy SMBC’s entire stake in Japan Net Bank, a leading online bank owned 57 percent by SMBC, it said.

Yahoo Japan is to initially acquire a stake of 14 percent or so in the venture and eventually hike the figure to about 50 percent, it said.

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