HSBC Holdings is among the bidders vying for a two-thirds stake in mid-size Japanese lender Tokyo Star Bank, the Nikkei business daily said today.
Dallas-based private equity fund Lone Star is auctioning off the $1.66 billion stake as it seeks to cash out of its six-year investment in the Japanese banking sector.
HSBC, which has wholesale banking and securities operations in Japan, is reportedly preparing to launch a retail banking business early next year, with the goal of opening as many as 50 branches within four years.
Analysts say that growth rate would be hard to achieve without acquisitions, meaning Tokyo Star and its 33-branch network could be a tempting target.
Tokyo Star's shares closed up 4.2 per cent on the Nikkei report, which said Lone Star may sell its entire holding to the winning bidder.