Rakuten Bank Jumps 10.4% as Mizuho Weighs Investment in Reorganization

3 articles · Updated · Bloomberg · May 18

Rakuten Bank shares climbed as much as 10.4% in Tokyo on Monday, their biggest gain in three months, after Mizuho Financial Group said it is considering an investment.
Mizuho framed the potential stake as one option in Rakuten Group's planned reorganization of its financial businesses, tying the move to a broader reshaping of the e-commerce group's finance arm.
Rakuten Group shares rose as much as 4.6% on the prospect of a deal, while Mizuho fell as much as 7.7%, pressured both by the investment plan and a stock buyback that missed analyst estimates.
The market reaction highlights how a possible tie-up could support Rakuten's restructuring efforts even as investors question the cost and capital impact for Mizuho.

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