Nomura faces big risks, rewards in Lehman deal

By Emi Emoto and Nathan Layne

TOKYO (Reuters) - Nomura Holdings' acquisition of Lehman Brothers' operations in Europe, Asia and the Middle East has given Japan's top broker the platform it needs to become a truly global investment bank.

Now comes the hard part.

Nomura, which grabbed Lehman's assets out of bankruptcy last month, has just started the difficult task of integrating a diverse set of operations and melding the high-risk culture of Wall Street with its more conservative approach.

The reward, if Nomura can manage the transition well, is a leap up investment banking league tables and significant expansion outside its mature home market.

But it is stretching its cost base at a time when the financial industry is in crisis, and will find it hard to keep the best of the 5,500 employees picked up in the deal from fleeing to rival banks.

"It's difficult right now to say whether this deal will be a big positive for Nomura or not," said Credit Suisse analyst Azuma Ohno. "The risk is that clients and key people will leave."

Nomura last week agreed to pay up to $525 million for Lehman's Asia-Pacific operations and a nominal fee of $2 for the European and Middle Eastern investment banking and equities arms.

The acquisition should fill several holes in Nomura's strategy.