Banking and Finance News & Trends: Dec Week 2

Banking and Finance News & Trends: Dec Week 2

Banking and Finance News & Trends: Dec Week 2

1. Trends

Rising Shareholder Activism Fuels MBOs in Japan

The surge in shareholder activism in Japan is driving increased management buyouts (MBOs) by founding families, as seen in the ongoing battle for Seven & i Holdings, the parent company of 7-Eleven. Vice-president Junro Ito has proposed a US$58 billion bid to take the company private, countering a US$47 billion offer from Canada’s Couche-Tard.

Takeaway: This “white knight” move would be the largest-ever MBO. It signals how future deals will likely pan out, and it is evident that similar deals are expected to become more common, a development that investors will view positively. Factors contributing to the trend include:

  • The unwinding of cross-shareholdings, reducing traditional defences against unsolicited offers.
  • Government guidelines urging companies to consider credible buyout offers.

MBOs are becoming a preferred strategy for families as a response to shareholder activism and the increased burdens for listed firms resulting from governance overhaul. Similar trends have been observed in other sectors, signalling a broader transformation in Japan’s corporate governance and investment environment.

 

2. Business Moves

i. Nippon Life to Acquire Resolution in Japan’s Largest Insurance Deal

Nippon Life, Japan’s largest insurer, has agreed to acquire the remaining 77% of Bermuda-based Resolution Life Group for US$8.2 billion, marking the largest insurance deal in Japan. The transaction is set to be completed by the second half of 2025, pending regulatory approvals. Alongside the Resolution deal, Nippon Life will acquire a 20% stake in MLC (its Australian subsidiary) for A$500 million to consolidate it fully and merge it with Resolution’s Australasian operations.

Takeaway: The acquisition aligns with Nippon Life’s strategy to expand in international markets, particularly in the US, the world’s largest life insurance market. The move seeks to counter domestic market challenges resulting from Japan’s ageing population. Blackstone, which will remain Resolution’s investment manager post-acquisition, expressed interest in strengthening its relationship with Nippon Life Insurance. Nippon Life also plans to:

  • Invest: Allocate a total of four trillion yen for growth investments by 2035, with about 50% directed toward overseas insurance ventures, 25% toward acquiring international asset managers, and the remaining 25% focused on domestic opportunities.
  • Expand in Asset Management: The company has also expressed interest in expanding its asset management portfolio. It currently holds a 27% stake in Los Angeles-based TCW Group and is considering increasing its ownership.

 

ii. The Kho Family Sets Up Family Office in Hong Kong

The Kho family from the Philippines, owner of the 40-year conglomerate The Kho Group (TKG), established a family office in Hong Kong.

Takeaway: This move highlights Hong Kong’s appeal as a leading international financial centre and is part of the city’s broader strategy to attract family offices. Hong Kong aims to attract 200 large family offices by 2025, with over 2,700 already established by the end of 2023. The Kho family’s decision reflects confidence in Hong Kong’s financial ecosystem and aims to foster collaborations, business growth, and innovation. This development is expected to boost international capital inflows and solidify Hong Kong’s status as an asset and wealth management hub.

 

iii. Hermes Family Eyes Investment in French Insurer Albingia

Krefeld Invest, a consolidated family office of heirs to Hermes’s luxury fortune, is in exclusive talks to buy Eurazeo’s 70% stake in French insurer Albingia from Eurazeo in a deal expected to amount to €289 million. This consortium is led by the Chamoin family and includes Fairfax Financial Holdings.

Takeaway: This transaction marks one of Krefeld’s first publicised investments, signalling the Hermes family’s strategy to diversify their US$171 billion fortune beyond luxury goods. The deal highlights the growing interest among family offices in stable, non-luxury assets to balance portfolio risk and ensure long-term wealth sustainability.

 

iv. Temasek to Launch Wholly Owned Private Credit Platform

Temasek launched a wholly owned private credit platform with an initial portfolio of approximately S$10 billion, comprising direct investments and credit funds. The platform will be managed by a team of 15 investment professionals across New York, London, and Singapore, under the leadership of Nicolas Debetencourt, head of credit and hybrid solutions at Temasek.

Takeaway: This move aligns with the growing demand for private credit, a sector gaining momentum due to stricter bank regulations following the 2023 Silicon Valley Bank crisis. The global private credit market is expected to grow significantly, from US$1.5 trillion in 2023 to US$2.6 trillion by 2029. In line with this trend, BlackRock, the world’s largest asset manager, also revealed plans to acquire private credit firm HPS Investment Partners.

Temasek has been investing in credit funds for over a decade, and this platform complements its broader asset management strategy, which includes investments in sustainability and digitisation.

 

v. Apollo to Launch US$25b Flagship PE Fund

Apollo Global Management is preparing to launch its largest-ever private equity fund targeted at US$25 billion, which is set to debut early next year. This ambitious fundraising comes after the firm fell short of a similar goal last year. Apollo’s 10th fund closed at US$20 billion.

Takeaway: It marks a significant move as private equity firms aim for record fundraising volumes amidst a recovering market. Deal-making has slowed recently due to high financing costs and lower distributions. However, with a decline in interest rates and expected improvement in the IPO market, investor interest in private equity is rising.

 

vi. Blackstone to Buy Tokyo Complex from Seibu for 400 Billion Yen

Blackstone is acquiring the Tokyo Garden Terrace Kioicho complex from Seibu Holdings for approximately 400 billion yen (S$3.5 billion), marking its largest real estate deal in Japan. This mixed-use property includes office space, rental apartments, a hotel, and retail offerings. Blackstone plans to invest in refurbishing the property and expects the transaction to close in February.

Takeaway: The acquisition reflects growing global investor interest in Japan’s property market, fuelled by factors like the weak yen, low borrowing costs, and strong demand for metropolitan real estate. This deal highlights the firm’s increasing involvement in Japan, with 2024 marking its most active year in the country.

 

vii. ESR Secures US$2.5b in Largest SSL Loan

Hong Kong-listed real asset manager ESR Group secured a five-year US$2.5 billion syndicated sustainability-linked loan (SLL). The loan structure ties interest rate reductions to the group’s sustainability performance, with two KPIs: increasing solar power capacity and improving sustainability certifications for its properties. Proceeds will be used for corporate purposes, working capital, and refinancing.

Takeaway: This is the largest of its kind in Southeast Asia’s real estate sector this year and brings ESR’s total SLLs to nearly US$7 billion across 11 deals. The deal is supported by leading banks, including Mizuho, MUFG, OCBC, UOB, HSBC and CIMB. ESR group aims to achieve 1,000 MW of solar power and 50% of its portfolio with high sustainability certifications by 2030.

3. People Moves

i. Banks: RBI and ANZ Group

DBS: DBS appointed Han Kwee Juan as the new head of institutional banking, effective January 1, 2025. Han will succeed Tan Su Shan, who will become CEO in March 2025 after Piyush Gupta’s retirement.

  • Experience: Han, currently DBS’ Singapore country head, was previously considered a potential CEO successor.

Lim Him Chuan, the group head of strategy, transformation, analytics, and research, will take over as Singapore country head. Han and Lim will remain on the group executive committee and report to Piyush Gupta.

HSBC: HSBC appointed Annie Lim as the new Global Private Banking (GPB) Desk Head for Singapore.

  • Experience: Lim has over 29 years of experience in banking across Asia and has previously worked at Lombard Odier, Credit Suisse, Standard Chartered, and American Express Bank.
  • Responsibilities: In her new role, she will focus on expanding HSBC’s client base in the ultra-high-net-worth (UHNW) and family office segments in Singapore.

This move is part of HSBC’s broader strategy to strengthen its wealth management presence in South Asia.

RBI: India appointed Sanjay Malhotra as the new Governor of the Reserve Bank of India (RBI), succeeding Shaktikanta Das, effective December 11.

  • Experience: Malhotra is the current Revenue Secretary in the Ministry of Finance and has over three decades of experience in public policy, particularly in finance, power, and taxation.
  • Takeaway: His appointment comes at a critical time as the RBI faces pressure to ease interest rates due to slow economic growth and high inflation, which remains above the RBI’s target. Although analysts expect a rate cut in early 2025, Malhotra is unlikely to change the direction of monetary policy drastically. His strong relationship with key government figures is seen as beneficial for coordinating fiscal and monetary policies, with a focus on boosting investments and economic growth.

ANZ Group: Nuno Matos will become the CEO of ANZ Group Holdings on July 3, 2025, succeeding the retiring Shayne Elliott.

  • Experience: Matos, a former HSBC executive with extensive international experience, will join ANZ’s board as an executive director.
  • Compensation: He will earn a salary of A$2.5 million, the same as Elliott, with a short-term bonus potential of up to 80% and a long-term incentive of up to 135%.
  • Responsibilities: Matos will focus on executing ANZ’s strategy, addressing non-financial risks, and integrating Suncorp Group’s banking arm.
  • Takeaway: His appointment provides stability after a tumultuous period and positions ANZ for critical developments in the coming years.

 

ii. Wealth: UBP, BNY and PGIM

UBP: UBP appointed Jacky Leung as its new Hong Kong-based Head of Investment Services for North Asia, effective 2 January 2025. Leung takes over from Andy Lee, who is leaving UBP to explore opportunities outside the bank.

  • Experience: Leung has over 20 years of experience and has previously led the Investment Solutions Group at the Bank of Singapore’s Hong Kong branch.

BNY: BNY Mellon made two senior-level appointments:

  • Madiha Sattar was named Managing Director and Growth Ventures Partner, a newly created global role based in the UAE. Sattar will join the leadership team of BNY’s Growth Ventures business, which focuses on building new businesses at the intersection of technology, data, and investment solutions. Sattar has over 20 years of industry experience, and previously led new businesses at Careem and has also worked at J.P. Morgan and McKinsey.
  • Ashvin Parkash was named Head of Global Markets Trading for Asia Pacific and will be based in Singapore. Parkash has 25 years of industry experience and previously held roles at Nomura, BNP Paribas, Citibank, and Lehman Brothers. His experience in business growth and product strategy is expected to position him well to enhance BNY’s regional offerings.

PGIM: PGIM Investments, the investment management arm of US-based Prudential Financial, appointed Brenda Leow as its new Singapore-based Head of Southeast Asia.

  • Responsibilities: Leow will oversee expanding PGIM’s client network in the region, focusing on partnerships with private banks, wealth managers, family offices, and global financial institutions.
  • Experience: Leow has over 20 years of experience in asset management and has held leadership roles at SBI Digital Markets, Natixis, Fullerton Fund Management, Deutsche Asset Management and SG Asset Management.

 

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  • Bloomberg
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