Aichi Financial Group and San ju San Financial Group agreed on 13 May to pursue a merger that would have created a Tokai-region banking group with more than ¥11.6tn in assets, but terminated the plan on 10 September before signing a final agreement.
Why Aichi Financial Group, Inc. is buying San ju San Financial Group, Inc.
The groups said combining their strengths would make them more competitive in the Tokai region, a manufacturing hub, as population decline, rising interest rates and digital competition reshape regional banking. They planned to invest in IT and digital transformation and expand into new businesses, extending their footprint from Aichi and Mie prefectures to Tokyo, Osaka and other areas.
Deal terms and financing
The merger ratio was to be set after due diligence and third-party valuations before the final agreement. The combined group would have had deposits of about ¥10tn, 5,023 employees and consolidated net income of ¥27.8bn.
Regulatory approvals and timing
The deal required shareholder approval at both companies and regulatory permissions. On 10 September the boards agreed to end the basic agreement because a final agreement, expected by the end of September, looked difficult to reach.
Market context
Aichi Bank itself was formed in January 2026 by merging the former Aichi Bank and Chukyo Bank. Aichi Financial president Yukinori Ito said there were differences over various points and that the group would strengthen its current management system, while San ju San president Gotaro Michihiro did not rule out renegotiation.
