Nomura Holdings plans to scale back a brokerage venture with messaging app operator Line Group amid a gloomier outlook for the business.
As part of the restructuring, Japan¡¯s biggest securities firm will take over the management of client brokerage accounts while the venture, Line Securities, will focus on foreign-exchange margin trading services, the companies said Monday.
The move marks another setback for Nomura, which had battled losses at the venture as it sought to obtain younger, tech-savvy clients. Last year, it pumped more money into the entity, which was formed in 2019 and offered financial services via smartphones.
¡°In light of changes in the business environment and the profit outlook for Line Securities¡¯ services, Line Financial and Nomura agreed to the business restructure after considering the optimal allocation of resources,¡± according to the statement.
The parties will hold talks to prepare for the completion of the overhaul in 2024 and the ¡°beginning of a new Line Securities.¡±
The impact of the restructuring on Nomura¡¯s earnings will be negligible, a spokesperson said. The company has invested around ?24 billion ($172 million) in the joint venture.
Line Securities represented a fresh expansion of online business by Nomura after earlier efforts faltered. It folded its internet unit Joinvest Securities into the group¡¯s main brokerage arm in 2009.
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