Japan Post is set to call off its planned acquisition of Nomura's real estate business.
By acquiring the Nomura real estate unit Japan Post (JP) wanted to acquire commercial expertise in real estate development and develop a methodology to better utilise the many post offices and properties it owns across the country.
However as the two companies apparently failed to reach an agreement on a purchase price and other conditions, JP is expected to call off plans to acquire Nomura Real Estate Holdings.
Plans For Sale
Local media reported that the Japanese postal, logistics and financial company will now need to review its strategy of making the real estate business a pillar of its operations to cope with the declining transaction volume of postal items amid the rise of the internet.
The Japanese government, which holds around 80 percent of the outstanding shares in JP, is planning to sell part of its stake in several tranches through fiscal 2022 while retaining more than a third of all shares in the company.
Caution Urged
JP logged a huge loss in the business year ended March due to a massive write-down of its Australian logistics arm which it acquired in 2015 to expand overseas operations. Investors and ruling party lawmakers have called on JP to take a cautious approach on any potential acquisition plan for the Nomura business.
Japan Post and its banking and insurance units were listed on the Tokyo Stock Exchange in 2015.
