Major Japanese financial firm Orix Corporation eyes Gulf acquisitions - IFN

Major Japanese financial firm Orix Corporation eyes Gulf acquisitions

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GLOBAL: In an interview with Bloomberg, the corporate executive vice-president of Orix Corporation, Kazuo Kojima, said that the firm is looking to spend up to JPY50 billion (US$506 million) in acquisitions throughout Southeast Asia, the Middle East and Africa in the next 12 months. The firm, which is ranked among the top in Japan in terms of acquisitions, is looking to increase its focus on SMEs and consumer lending business in emerging markets as a means of diversifying its business away from leasing. According to data by Bloomberg, Orix has announced a total of 15 acquisitions and joint ventures in the last year, with 20% of the company’s JPY1.1 trillion (US$11.09 billion) in revenue focused on overseas investments. Orix had recently acquired a 25.7% stake worth US$225 million in the Mediterranean & Gulf Insurance & Reinsurance Company (Medgulf) from SLH Holding, a majority stakeholder in the Bahrain-based insurance company. Medgulf is a major shareholder in Medgulf Saudi Arabia, which is listed on the Saudi Arabian stock exchange, Tadawul. In 2011, Medgulf had announced a partnership with Allianz Takaful to develop their insurance platforms in Bahrain and Qatar. The deal involved a transfer of 75% of Allianz Takaful to Medgulf as a means of leveraging on the Bahrain-based insurer’s wide market presence.