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Friday, 14th May 2010
In Business In Japan,

Japan banks scrap merger

Two banks in Japan have abandoned merger plans which were due to go ahead this year.

Shinsei Bank and Aozora Bank said today that by "mutual agreement" their merger plans have been cancelled.

Should the merger have gone ahead, the new financial firm would have been the sixth largest bank in Japan by assets.

A spokesman for Aozora Bank Tsutomu Jimbo said that as talks went on between the two banks "opinions diverged". However, he said that while the merger had been cancelled the firms were still considering a team-up of sorts but he would not be drawn on details.

"Instead of spending time on bringing together merger conditions and management strategies, we decided that expanding each of our strengths separately was the top priority," he further explained.

The central bank of Japan recently donated a large amount of cash to an international banking fund aimed at easing financial woe in Europe.

Written by Kimberley Homer.