Mizuho (MFG) Aims to Retain Position in the Top 10 Global IB
Per LSEG, Mizuho Financial Group, Inc. MFG secured the last position among the top ten global investment banks (IB) in 2023. The company aims to remain in the league table in the upcoming period. Per a Reuters article, head of Mizuho's global IB division, Naoki Takahashi, stated in an interview, "We believe we can keep our position in the top 10."
The major factor, which will likely support MFG’s top position, is the acquisition of Greenhill, a mergers-and-acquisitions (M&A) and restructuring advisory firm, in early December of 2023. Further, the company was one of the lead investment bankers involved in the underwriting of Britain-based semiconductor company Arm Limited’s initial public offering last year.
The last time a Japan-based firm appeared in the top ten league table was back in 2010, when Nomura Holdings occupied the ninth spot. The top positions are mostly dominated by global banks like The Goldman Sachs Group, Inc. GS and JPMorgan Chase & Co.JPM. Both GS and JPM have been occupying the top two positions in the table since the last two years.Takahashi stated, "We want to challenge the dominance of bulge-bracket banks."
Per Reuters, Mizuho's M&A advisory business strategy is different from its domestic rivals, including Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, as these banks partner Morgan Stanley and Jefferies Financial Group, respectively, through minority investments.
The acquisition of Greenhill is expected to accelerate MFG’s M&A advisory platform, including the U.S. and Europe markets. Such enhanced capabilities are likely to provide MFG with better deals abroad, thus giving it an advantage over its rivals.
MFG’s shares have gained 7.3% on NYSE in the past three months compared with the industry’s 5.5% growth.
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MFG presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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