Mizuho’s $550 million Greenhill purchase expands U.S. banking. As Japan’s No. 3 lender seeks a larger portion of the world’s largest investment banking fee pool, Mizuho Financial Group Inc (8411.T) will purchase Greenhill & Co Inc (GHL.N).
The firms announced on Monday that Mizuho would pay $15 per share in cash for Greenhill, valuing the company at $550 million, including assumed debt.
Greenhill shares doubled to $14.68 in early trading after the announcement.
Since acquiring Royal Bank of Scotland’s North American corporate loan portfolio in 2015, Mizuho has strengthened its U.S. debt underwriting capabilities, leaving M&A advising and equity underwriting for expansion.
It acquired Texas-based Capstone Partners last year.
In April, Mizuho’s larger rival, Sumitomo Mitsui Financial Group (8316.T), stated it would increase its holding in Jefferies Financial Group Inc (JEF.N) from 4.5% to 15%.
The statement stated Michal Katz, Mizuho’s America’s banking head, will oversee the Greenhill company.
It stated that Greenhill Chairman and CEO Scott L. Bok would chair the M&A and restructuring advice business.
Last year, Mizuho brokerage CEO Yoshiro Hamamoto told Reuters that the business “has room for further growth” in the U.S. and was considering acquisitions.
