May 22 (Reuters) – Mizuho Financial Group (8411.T) will buy U.S. M&A advisory firm Green Hill (GHL.N) for $550 million including debt, the companies said on Monday announced to It has a larger share of the world’s largest investment banking fee pool.
Following the announcement, Greenhill shares more than doubled on Monday, closing at $14.66 a share, just below its offering price of $15 a share.
Monday’s rally helped Greenhill stocks offset losses accumulated over the past 12 months in the impact of higher interest rates on deal closing. At its initial public offering in 2004, the stock was $20.
The Greenhill business will be located within Mizuho’s banking division and will be led by Michal Katz, head of the Americas banking division. Chairman and CEO Scott Bok will become Chairman of the M&A and Restructuring Advisory business.
“We have a strong M&A practice in Japan, but we are still in the early stages here in the US and elsewhere, so this is a way for us to scale in a meaningful way,” said Mizuho US. Securities President and CEO Jerry Rizzieri said. said in an interview with Reuters.
Mizuho has doubled its U.S. fixed income underwriting business since acquiring the Royal Bank of Scotland’s North American corporate loan portfolio in 2015, leaving M&A advisory and equity underwriting as targeted areas for further growth. .
Last year, the firm acquired Texas-based private equity placement agent Capstone Partners.
Other Japanese banks are also expanding their presence in the United States.
Mizuho’s rival Sumitomo Mitsui Financial Group (8316.T) said in April it would raise its stake in Jefferies Financial Group (JEF.N) from 4.5% to as much as 15%. .
Mizuho Securities chief executive Yoshiro Hamamoto told Reuters last year that the group had “further growth potential” in the U.S., and that an acquisition was an option under consideration.
Greenhill was founded in 1996 by former Morgan Stanley executive Robert Greenhill.
Reported by Jaiveer Singh Shekwat in Bangalore.Editing: Rashmi Aichi
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