Possible Orix-Saison Merger: About Time or Atonomatsuri?

Includes: IX, MFG
by: Steven Towns

Shares of Credit Saison [8253] jumped 11%, while Orix (NYSE:IX) (71.80 +2.40%) (8591) rose a muted 3%, on the report of merger talks (Reuters). However, shares of both have fallen sharply over the past year (there’s even more red over the past two years) compelling one to wonder why an alliance wasn’t formed earlier.

Ultimately, Orix shareholders will be rewarded (no details yet if cash/stock merger), but a portion of existing owners of Saison will take a hit (which begs the question of whether Mizuho (NYSE:MFG) (9.20 +3.49%) (8411) will sell its stake). Orix is a great company, but there’s seemingly no rush to get in given broader market pressures.