BDO consolidates brokerage business

MANILA, Philippines — BDO Unibank Inc. (BDO) is buying out the interest of Nomura Holdings Inc. under BDO Nomura Securities Inc. as part of the plan of the Sy family to consolidate their securities brokerage business.

The country’s largest bank said in a disclosure to the Philippine Stock Exchange (PSE) it has reached an agreement on the fundamental principles in acquiring the 49 percent interest of Nomura Asia Investment (Singapore) Pte. Ltd. in BDO Nomura.

“The transaction will enable BDO to consolidate its securities brokerage business into BDO Securities Corp., which is being reorganized into a full service brokerage firm with an expanded product offering to include non-equity securities,” the bank said in a statement.

The bank said the transaction is subject to further discussion and final agreements, in addition to any required corporate and regulatory approvals.

BDO and Nomura inked a joint venture agreement in January 2016 to form BDO Nomura that became operational on Oct. 26. The Sy family owns 51 percent of the joint venture, while the Japanese firm controls the remaining 49 percent.

BDO ranked as the largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition as of end March.

It has one of the largest distribution networks, with more than 1,400 operating branches and over 4,400 ATMs nationwide. The bank has full-service branches in Hong Kong and Singapore as well as 15 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

Nomura, on the other hand, is a leading financial services group and preeminent Asia-based investment bank with global reach. It provides a broad range of innovative solutions tailored to the specific requirements of individual, institutional, corporate and government clients through an international network in over 30 countries.

Nomura’s unique understanding of Asia enables Nomura to make a difference for clients through three business divisions, namely, retail, asset management and wholesale.