China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
Orix and Credit Saison in merger talks: sources
TOKYO (Reuters) - Orix Corp Japan's largest leasing company, and consumer credit firm Credit Saison are in merger talks, financial sources close to the matter said on Tuesday.
Orix has sounded out Mizuho Financial Group Credit Saison's top shareholder, about selling its stake to allow the merger to happen, the sources told Reuters.
The Nikkei business daily reported earlier that Orix and Credit Saison are in talks to create a non-bank financial group with assets of 11.5 trillion yen ($106.3 billion).
The merger would come as Japan's financial sector suffers from the fallout of the subprime loan crisis and a slowing economy.
The consumer finance industry in which Credit Saison operates has also been hurt by tighter regulation lowering maximum interest rates, and legal rulings that have forced firms to repay previous charges now deemed illegally high.
Citing sources close to the talks, the Nikkei said that setting up a holding company and placing the two companies under it was an option, but the most likely outcome would be a merger to be completed in the autumn of 2009.
The companies are working towards striking a basic agreement next month to create Japan's first major non-bank financial group, the newspaper said.
($1=108.20 Yen)
(Reporting by Emi Emoto; Editing by Chris Gallagher)
