News Release


[Sumitomo Mitsui Financial Group, Inc.]Notice Regarding the Conclusion of the Final Agreement on Strategic Joint Partnership in Auto Leasing Business (1/1)

 

November 2, 2011

 

Hitachi Capital Corporation

(Security Code No. 8586, Tokyo Stock Exchanges, First Section)

Hitachi Capital Auto Lease Corporation

Sumitomo Corporation

(Security Code No. 8053, Tokyo Stock Exchanges, First Section)

Sumitomo Mitsui Financial Group, Inc.

(Security Code No. 8316, Tokyo Stock Exchanges, First Section)

Sumitomo Mitsui Auto Service Company, Limited

 

 

Notice Regarding the Conclusion of the Final Agreement on Strategic Joint Partnership in Auto Leasing Business

 

We are pleased to announce that Hitachi Capital Corporation (President: Kazuya Miura; hereinafter gHitachi Capitalh), Hitachi Capital Auto Lease Corporation (President: Akio Ohfuji; hereinafter gHCALh), Sumitomo Corporation (President: Susumu Kato), Sumitomo Mitsui Financial Group, Inc. (President: Koichi Miyata; hereinafter gSMFGh) and Sumitomo Mitsui Auto Service Company, Limited (President: Makoto Sato; hereinafter gSMASh) signed the final agreement dated today with respect to (i) business alliance with the aim of forming a strategic joint partnership in the auto leasing business, (ii) transfer of a part of the SMAS shares currently held by Sumitomo Corporation to Hitachi Capital and (iii) transfer of a part of the HCAL shares currently held by Hitachi Capital to SMAS (hereinafter, the above (i) is referred to as gBusiness Alliance,h the above (ii) and (iii) are each referred to as gCapital Allianceh and all of (i) through (iii) collectively referred to as gBusiness & Capital Alliancesh) in accordance with the terms and conditions set forth below:

 

1. Basic Policy on Strategic Joint Partnership in Auto Leasing Business

 

As already reported in the press release gNotice Regarding Business & Capital Alliances for Strategic Joint Partnership in Auto Leasing Businessh issued on March 31, 2011, Hitachi Capital, HCAL, Sumitomo Corporation, SMFG and SMAS have a basic policy of leveraging the resources of the customer base and know-how owned by SMAS and HCAL, of recognizing the other party as the best partner based on a spirit of mutual respect and collaboration, and of providing customers with high-value-added products, with the aim of strengthening mutual profitability as well as boosting market share.

 

2. Outline of Business Alliance

 

The contracting parties in the Business Alliance, namely Hitachi Capital, HCAL and SMAS, will jointly form comprehensive business ties in the auto leasing business with the aim of forming the No. 1 auto leasing company that can provide customers with high-value-added products and services following best practices in fairness and transparency through the Business Alliance.

 


3. Outline of Capital Alliance

 

The Parties will also form the following Business Alliance in order to facilitate smooth execution of the Business Alliance:

(i) Sumitomo Corporation will transfer 6,334,088 shares(*) of SMAS stock currently held (20% of the shares outstanding) to Hitachi Capital.

(*) The shares include SMAS class A classified stock currently held by Sumitomo Corporation that will be fully converted into SMAS common stock before the transfer of the shares.

(ii) Hitachi Capital shall assign 2,940 shares of HCAL stock currently held (49% of the shares outstanding) to SMAS.

 

4. Schedule

 

November 2, 2011                                        Execution of the final agreement

January 2012 March 2012 (planned)        Execution of transfer of the shares

(after the approval of the relative authorities)

 

 

 

 

 

 

End

 




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