TOKYO, March 3 Japanese banks Sumitomo Mitsui
Financial Group (SMFG) and Resona Holdings Inc
said on Friday they have agreed to merge their regional lenders,
as they face tough market conditions that are expected to worsen
in the future.
Under the agreement, the two banks will set up a holding
company for their three regional lenders, they said in a
statement. The holding company will be a consolidated subsidiary
of Resona Holdings.
SMFG said separately it would sell 37.2 million of its
shares in a secondary offering.
(Reporting by Thomas Wilson; Editing by Stephen Coates)