Japan Post drops plan to acquire Nomura Real Estate

The two firms have confirmed that a deal is no longer on the cards.

Japan Post Holdings Co’s plans to acquire Nomura Real Estate Holdings has been scrapped.

In an official statement, Nomura Real Estate Holdings has said that will be calling off considering a sale of its stocks to the Japanese postal giant.

The Japanese property company confirmed that it had been looking at a potential deal with the postal bank from a “perspective of maintenance of and to increase the corporate value of the company.”

Reasons for the decision were not disclosed. A report in Nikkei Asian Review has suggested that the two firms could not agree on the purchase price among other terms and conditions.

The news comes a little over a month after Japan Post announced a net attributable loss of ¥28.98 million ($260 million; €233 million) for the fiscal year ending March 31, 2017 in its latest annual report. In contrast, the postal group had earned ¥425,972 million in net income for the 2016 financial year. The drop in performance was attributed to the massive impairment losses incurred from Toll Holdings, the Australian logistics business it acquired in 2015.

Meanwhile the group’s insurance arm Japan Post Insurance, that manages about $800 billion of assets, launched an alternatives assets division to be based in Tokyo last September.