Mizuho Bank absorbs subsidiary to streamline operations

This aims to enhance the bank's call centres and online services.

Mizuho Bank and its wholly-owned subsidiary, Defined Contribution Plan Services Co. (DCPS), have entered into a merger agreement, with the merger set to take effect on 1 July 2025, pending approval. 

Under this absorption-type merger, Mizuho Bank will be the surviving entity, with no issuance or allocation of shares or monetary consideration.

The merger will not affect Mizuho Bank’s trade name, head office location, representative’s title or name, business activities, or fiscal year. 

The merger aims to enhance the bank’s call centres and online services whilst improving management efficiency by consolidating administrative functions like human resources and accounting.

For over 20 years, Mizuho Bank and DCPS have offered defined contribution (DC) pension services in Japan, following the establishment of the country’s DC pension system. 

As of March, the number of participants in Mizuho’s DC pension plans exceeded 1.79 million and is expected to grow alongside the broader DC pension industry.

This merger is set against the backdrop of rapid digitalisation, increased cybersecurity demands, and labour shortages caused by Japan’s declining workforce. 

As DCPS is fully owned by Mizuho Bank, the merger will have no material impact on the bank’s financial performance.