As announced on April 1, 2024, in the "Notice Concerning Execution of a Memorandum of Understanding Regarding Reorganization of Rakuten’s FinTech Business” and on July 29, 2024 in the “(Progress of Disclosure Matters) Notice Regarding Reorganization of Rakuten’s FinTech Business”, Rakuten Group, Inc. (Head Office: Setagaya-ku, Tokyo, Chairman and CEO: Hiroshi Mikitani; hereinafter “Rakuten Group”) had been in discussion on a reorganization of the FinTech business with Rakuten Bank, Ltd. (Head Office: Minato-ku, Tokyo; President & CEO: Hiroyuki Nagai; hereinafter "Rakuten Bank"). This reorganization aimed to contribute to a sustainable growth and an enhancement of corporate value for both Rakuten Group and Rakuten Bank, with comprehensive consideration of various factors, including legal regulations related to each service in the FinTech business, the interests of minority shareholders of Rakuten Bank, and the optimal group structure to strengthen the FinTech business Ecosystem. Both companies had been advancing the consideration of this reorganization, aiming for it to take effect in January 2025.
However, we have concluded that proceeding with this reorganization is not necessarily the best option for further expansion of the FinTech Ecosystem and enhancing competitive advantage. Therefore, we have decided today to cancel this reorganization.