Bloomberg reports that the securities firm is reviewing 'a couple' of potential acquisition targets in Asia, Nagai, 53, said in an interview in Tokyo Friday. Countries including China, India, Indonesia,Thailand and Vietnam are of interest, he said, without elaborating on how much Nomura would be willing to spend or which companies are being considered.
His remarks underscore a goal of making the region Nomura’s 'mother market' as Nagai, who took over as CEO last month, seeks to stem nine quarters of losses overseas and add market share at home after an insider-trading scandal. The company said it plans to trim $1bn of costs, with almost half to come from Europe, the region that lost the most money last year.
'The moves announced so far make sense in cutting costs, adopting a more focused strategy and emphasizing the core markets of Japan and the rest of Asia', said David Marshall, an analyst at Creditsights Singapore. 'A key issue will be convincing the best people to stay and that Nomura has a viable future business outside Japan'.
The brokerage may buy assets or set up joint ventures with local firms to get access to facilities and operations that it doesn’t have, Nagai said. Tokyo-based Nomura has failed to sustain profit abroad since it acquired Lehman Brothers Holdings Inc.’s Asian and European operations in 2008.
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Bloomberg also reports that Nagai has also said that he plans to make overseas operations profitable by June 2014.
'We are not going to lower the flag as a global bank', Nagai, 53, said in an interview in Tokyo on Sept. 7. 'We want be an Asia-based global investment bank'.