Japanese lender Promise Co. said Friday its tender offer to buy Sanyo Shinpan Finance Co. was successful, a move that will create Japan's largest consumer lender in outstanding loans.
Promise said it will buy 22.6 million Sanyo Shinpan shares for ¥96.5 billion for a 94.7 percent stake.
The offer closed Thursday and its settlement is set for Sept. 25, it said. Promise said it hoped to acquire all shares.
Japan's consumer finance companies have been struggling to restructure and create new business models to bolster their earnings amid tighter industry regulations.
With an interest rate cap and other restrictions kicking in over the next several years, the consumer finance market is expected to shrink by half.
Amid growing public criticism against lenders charging exorbitant interest rates, the government passed a law in December that will lower the cap on consumer loans to 20 percent from nearly 30 percent in about two years.
Promise's acquisition of Sanyo Shinpan will create a company with a combined ¥2.03 trillion in outstanding loans, topping industry leader Aiful's ¥1.99 trillion.