4 Ways Citigroup is Shaking Up Japan’s Securities Market

Citigroup just spent 920 bllion yen to raise its stake to 61% in the Japanese brokerage, Nikko Cordial Corp. Japan's third largest.

It was the largest ever acquisition of a Japanese firm by a foreign company.

The purchase is expected to intensify competition among securities companies in Japan.

The reasons:

1. Citigroup immediately has more than 100 branches nationwide for individual investors.

2. Citigroup becomes a strong rival to Japan's megabanks and major securities firms.

3. Domestic investor sentiment regarding foreign funds has changed in Japan.

4. Japan's financial market is shifting from savings to investments, including overseas investments.

Citigroup is prepared to show the Japanese firms how the company does business.

Do you think Japanese security firms will be able to keep up?