Mizuho Financial Group, Inc. is set to acquire Greenhill & Co., Inc. in an all-cash transaction of $15 per share. This transaction values Greenhill at $550 million, including debt. The deal is subject to regulatory and Greenhill stockholders’ approval and expected to be completed by the end of 2023.
Greenhill is a global investment bank with operations worldwide. Mizuho Financial’s acquisition will significantly expedite its expansion initiatives in investment banking.
Following the acquisition, Greenhill will operate in Mizuho’s business across its 15 worldwide locations. Greenhill’s current leadership team, brand, and global network will remain in place.
Mizuho Financial’s banking division headed by Michal Katz, Head of Banking in the Americas will include Greenhill’s business. The Chairman and CEO of Greenhill, Scott L. Bok, will be the chairman of the M&A and restructuring advisory business. Kevin Costantino and David Wyles, the current co-presidents of Greenhill, will become co-heads of the business.
Mizuho Financial’s President and Group CEO, Masahiro Kihara, said, “We see meaningful synergies in the combination that will benefit all of our stakeholders.”
Mizuho Americas Chairman and CEO, Shuji Matsuura, added that “The transaction represents an important strategic milestone, and we plan to continue to invest in the growth of our global banking franchise.”
Scott Bok, Chairman, and CEO of Greenhill also stated that Greenhill’s employees, as well as its clients, will benefit from becoming a part of a more diversified financial institution.
In the past year, Mizuho Financial stocks have risen by 22.6%, compared to 2.4% for the industry.
Other banks have also invested in inorganic growth initiatives. JPMorgan recently acquired the failed First Republic Bank. The company bought most of First Republic’s $228 billion of assets and assumed deposits worth $92 billion by paying $10.6 billion.
The acquisition followed the collapse of two other major banks, Signature Bank and Silicon Valley Bank, in March and led to the latest banking industry turmoil amid fears of the contagious effect on the U.S. regional banks. Signature Bank and Silicon Valley Bank were seized by the FDIC and then eventually sold to New York Community Bancorp, Inc. and First Citizens BancShares, Inc., respectively.
This acquisition will lead to Greenhill’s M&A and restructuring capabilities becoming available to Mizuho Financial’s clients, and the company plans on continuing to invest in the growth of its global banking franchise.
Image Source: Zacks Investment Research
Currently, Mizuho Financial holds a Zacks Rank #4 (Sell).
You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks on their website.
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