As the inauguration of U.S. President-elect Trump approaches, Mizuho Bank's CEO, Masahiro Kihara, expressed hope for more business-friendly regulations under Trump's administration. This could facilitate larger mergers and acquisitions (M&A) for Mizuho in the U.S. financial market. Last year, Mizuho acquired Greenhill & Co., a boutique investment bank, for $550 million. The bank aims to expand its global M&A advisory business further with Trump's term potentially boosting M&A activities.
However, Kihara acknowledges potential challenges for foreign companies, given the "Make America Great Again" ideology. Japanese banks, facing limited growth prospects domestically due to a shrinking population, are seeking more overseas business, with the global M&A market being a crucial target. Despite a 15% increase in global M&A transactions this year, not all deals proceed smoothly. For instance, Nippon Steel's acquisition of a U.S. steel company faced resistance from the U.S. government.
Mizuho plans to leverage Greenhill & Co. and its international client network to secure more cross-border deals. The bank is also open to investment opportunities in asset management firms like Golub Capital, having acquired a minority stake earlier this year.
