Mizuho announced, this Monday, the 22nd, the purchase of investment bank Greenhill, for US$ 15 per share, representing approximately US$ 550 million. The transaction is expected to close by the end of the year and is subject to Greenhill shareholder and regulatory approval.
Upon completion of the transaction, Greenhill will retain its brand, operating as a merger advisory (M&A) and restructuring business, owned by Mizuho. Greenhill’s executive leaders will also remain with the company, according to the note.
After the news, Greenhill’s action soared 116.81% on the New York Stock Exchange, around 1:30 pm, while Mizuho’s American Depositary Receipts (ADRs) fell 1.19%.
Greenhill’s current CEO, Scott Bok, will become chairman of the M&A and restructuring business.
Bok said the transaction will benefit Greenhill’s customers and employees as the bank becomes part of a larger, more diversified financial institution.
“Our clients will continue to receive the same high quality advice from the same team. In addition, they will benefit from access to the wide range of financing, capital markets and other products offered by Mizuho. Our employees will see little change in their day-to-day work and will benefit from access to Mizuho’s vast global customer base as well as its wide range of products,” he said.
Mizuho Financial Group Chairman and CEO Masahiro Kihara and Mizuho Americas Chairman and CEO Shuji Matsuura said in a joint statement that the transaction represents an important strategic milestone for the institution, and that they plan to continue investing in its growth. “Our banking division today serves more than 1,300 customers in the Americas and 900 in Europe, as well as more than 70% of all listed companies in Japan. We look forward to making Greenhill’s M&A and restructuring capabilities available to our clients, and to offer our wide range of solutions to Greenhill clients,” they stated.
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