Rakuten Group, Inc. (Head Office: Setagaya-ku, Tokyo, Chairman and CEO: Hiroshi Mikitani; hereinafter “the Company”) announces that its consolidated subsidiary Rakuten Card Co., Ltd. (Head Office: Minato-ku, Tokyo; President and CEO: Masayuki Hosaka; hereinafter “Rakuten Card”) and Mizuho Financial Group, Inc. (Headquarters: Chiyoda-ku, Tokyo; President & Group CEO: Masahiro Kihara; hereinafter “Mizuho FG") have today agreed to consider new strategic capital and business alliance between the two companies (hereinafter "the Alliance").
Since the announcement on November 9, 2023, regarding the "Announcement Regarding Strengthening of Strategic Capital and Business Alliance between Rakuten Securities Holdings and Mizuho Securities," Rakuten Securities Holdings, Inc. (Head Office: Minato-ku, Tokyo, President: Yuji Kusunoki) and Mizuho Securities Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President & CEO: Yoshirou Hamamoto) have been deepening their collaboration to build a new consumer business model that combines both online and offline aspects in the asset formation and asset management fields.
To further accelerate the growth of Rakuten Card, which is the core business of our FinTech operations, we aim to enhance our collaboration with Mizuho FG. This will allow us to pursue growth opportunities not only in the robust consumer sector but also in the corporate sector, which is expected to expand in the future. By deepening and expanding our partnership with Mizuho FG, which has a broad customer base, we believe we can expand the business domain and achieve a sustainable growth for Rakuten Card, as well as further expand and develop the entire Rakuten FinTech Ecosystem centered around Rakuten Card, thereby enhancing our corporate value. In addition, after the Alliance, there will be no change in the positioning of Rakuten Card as an important consolidated subsidiary of the Company in forming the Rakuten Ecosystem.
Currently, Rakuten Insurance Holdings Co., Ltd. (Head Office: Minato-ku, Tokyo; CEO and President: Hiroshi Takasawa; hereinafter "Rakuten Insurance HD"), a 100% consolidated subsidiary of Rakuten Card, would not be included in the Alliance. Rakuten Insurance HD will continue to be 100% owned by the Company, considering various factors including the fact that it is in the process of strengthening collaboration between the life insurance and general insurance businesses.
At this moment, specific details of the Alliance have not been finalized at this time. We will promptly disclose any matters that need to be announced in the future.
The Company and Rakuten Bank, Ltd. (Head Office: Minato-ku, Tokyo; President & CEO: Hiroyuki Nagai; hereinafter "Rakuten Bank") had been in discussion on a reorganization of the FinTech business, as disclosed on April 1, 2024, in the "Notice Concerning Execution of a Memorandum of Understanding Regarding Reorganization of Rakuten’s FinTech Business." This reorganization aimed to contribute to a sustainable growth and an enhancement of corporate value for both the Company 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, while comparing various options. However, we have concluded that proceeding with this reorganization is not necessarily the best option for further expansion of the FinTech Ecosystem and enhancing its competitive advantages. Therefore, we have decided today to cancel this reorganization.