Jan. 04, 2019
Sumitomo Mitsui Financial Group, Inc.
Sumitomo Mitsui Finance and Leasing Company, Limited
Sumitomo Mitsui Auto Service Company, Limited
Completion of Reorganization of the Joint Leasing Partnership of Sumitomo Mitsui Financial Group, Inc. and Sumitomo Corporation
Tokyo, January 4, 2019 -- Sumitomo Mitsui Financial Group, Inc. (“Sumitomo Mitsui Financial Group”, President and Group CEO: Takeshi Kunibe), Sumitomo Corporation (“Sumitomo Corp”, President and CEO: Masayuki Hyodo), Sumitomo Mitsui Finance and Leasing Company, Limited (“SMFL”, President: Masaki Tachibana), and Sumitomo Mitsui Auto Service Company, Limited (“SMAS”, President & CEO: Akira Tsuyuguchi) completed the below reorganization based on the final agreement concluded between Sumitomo Mitsui Financial Group and Sumitomo Corp on March 30, 2018, concerning the reorganization of their joint leasing partnership. As announced, “Change of Shareholding Structure in SMFL” and “Capital Increase in SMBC Aviation Capital and the Change of Shareholding Structure” have been completed, effective November 28, 2018.
1. Merger of SMFL Capital Co., Ltd. into SMFL
SMFL Capital Co., Ltd. (FLC) merged into SMFL, effective January 1, 2019. Through the merger, SMFL will further strengthen its domestic operations by leveraging the strengths of both FLC and itself while accelerating the integration of the two companies’ operations to maximize synergies.
2. FLC’s Auto Lease Business Converted into an SMAS Subsidiary and Change of Shareholding Structure in SMAS
Effective January 1, 2019, SMFL spun off FLC’s auto lease business and integrated the business into SMAS Fleet Co., Ltd. (SMAS Fleet), and SMAS converted SMAS Fleet into a 100% owned subsidiary by acquiring all of the company’s stock. On the same day, SMFL acquired a stake in SMAS, converting SMAS into an equity method affiliate of SMFL.
SMAS, with Sumitomo Corp remaining its largest shareholder, will strive to further develop its’ auto leasing business, which is part of the strategic joint leasing partnership, and to enhance its capabilities in integrated mobility service business* via the pursuit of synergies with SMAS Fleet and deepening collaborations with SMFL, its newest shareholder.
* Integrated mobility service business: Providing one-stop services through automobiles in connection with the movement of people and goods.
(Reference) Revised Framework
(**) Includes SMBC Aviation Capital (UK) Limited