Yahoo Japan has confirmed that it is buying a stake in Japan Net Bank, the online banking subsidiary of Sumitomo Mitsui Financial Group. Financial terms of the deal were not disclosed.
Under the deal Yahoo will acquire 14.9% of a new holding company for Japan Net Bank. Sumitomo Mitsui's core commercial banking unit will transfer its 57% stake in Japan Net Bank to the new holding company, which is expected to be established by September.
Yahoo says it may raise its stake in the holding company to as much as 50% in the future.
The deal with Sumitomo Mitsui will expand the banking and settlement services available to users of Yahoo's online shopping and auction sites.
Yahoo Japan originally inked a Web banking deal with Aozora Bank in January last year and was expected to launch joint services through Aozora Trust Bank this spring. However the deal was cancelled after the two firms reportedly failed to agree on the types of services to be offered and launch dates.
Last year the Internet firm teamed with with Tokyo-based brokerage Nikko Cordial and Internet broker E*Trade Securities to deliver online stock trading services to its users.