* Plans to move dozens of staff to European base - chief
* Decision could come by mid-June
* Frankfurt is the favoured destination for moving UK staff
* Looking at hiring M&A bankers in U.S. push
By Thomas Wilson and Emi Emoto
TOKYO, May 9 Daiwa Securities Group Inc
, Japan's No. 2 brokerage firm, may decide as early as
mid-June to move dozens of London-based staff to Frankfurt or
another European city, ahead of Britain's exit from the
European Union, its chief executive said.
The German city is Daiwa's favoured destination, as
London-based staff can easily be transferred to its investment
banking branch in Frankfurt, Seiji Nakata told Reuters in a
"We're looking at Frankfurt as the leading candidate," he
said. "The move will be in the dozens of staff, even including
management, and can be done without much time or cost."
Daiwa said it would keep staff in London even after Brexit,
but declined to say how many. It currently employs around 450
people in the EU, mostly in the British capital.
UK-based financial services firms doing business in the EU
rely on the "passporting" system to sell across the region. But
their UK operations are expected to lose this access after
Brexit, prompting firms to consider moving staff or operations
to other European cities.
Other investment banks were also favouring Frankfurt for
some of their UK-based staff, beating out contenders such as
Paris and Dublin.
Frankfurt's chief lobbyist expects U.S. investment banks to
move hundreds of key staff to the city within two years, while
Standard Chartered looks to base its European
OVERSEAS M&A PUSH
Daiwa's overseas business accounted for 10 percent of total
pretax profit of 136 billion yen ($1.2 billion) in the year
ended March, driven mainly by mergers and acquisition business
in Europe, Asia and Oceania.
To capture a greater share of Japanese deal-making in the
United States, Daiwa is looking to hire more M&A bankers in
sectors including technology, media and telecoms, Nakata said.
"(Japanese companies') M&A needs will be booming worldwide
for several years to come," he said. "But the problem in America
is that our number of bankers is small compared to the size of
Daiwa may also increase its stake in New York-based boutique
Sagent Advisors or invest in a separate advisory firm, Nakata
Nomura Holdings Inc, Japan's largest brokerage
firm, said last month it will boost coverage of cross-border
deals at its U.S. arm.
($1 = 112.7500 yen)
(Reporting by Thomas Wilson and Emi Emoto; Editing by Randy