FX.co ★ Rakuten Group, Rakuten Bank Execute MOU Regarding Reorganization Of FinTech Business

Rakuten Group, Inc. and Rakuten Bank, Ltd. have commenced negotiations to revamp Rakuten Group's FinTech division, including Rakuten Bank. The consideration is a proposed amalgamation of all FinTech enterprises, encapsulating Rakuten Bank, Rakuten Card Co., Ltd., Rakuten Securities Holdings Co., Ltd. Rakuten Insurance Holdings Co., Ltd., and other FinTech entities, into one unified organization.

Both Rakuten Group and Rakuten Bank are progressing with discussions geared towards formulating a definitive agreement. The reorganization is forecasted to be finalized by October 2024. Post reorganization, Rakuten Bank will remain a consolidated subsidiary of the Rakuten Group.

The proposed reorganization is classified as a substantial transaction with the controlling shareholder for Rakuten Bank. It is expected that the shares of Rakuten Bank will maintain their listing on the Tokyo Stock Exchange Prime Market, even after the successful conclusion of the reorganization.