Two Japanese Regional Banks’ Shares Surge in Latest Merger Pact

Shizuoka Financial Group Inc. and Bank of Nagoya Ltd. reached an agreement to consolidate their operations under a holding company, in the latest example of Japan’s regional lenders joining forces in a market hit by a shrinking population. Shares of the lenders jumped.

Under the pact, Bank of Nagoya will become a fully owned subsidiary of Shizuoka Financial through a share swap on April 1, 2028, the banks said in a joint statement on Friday. The share swap ratio will be determined later, they said.