OMC Card and Sumitomo Mitsui Financial Group to Form Strategic Alliance in Credit Card Business(1/1)
OMC Card, Inc.
Sumitomo Mitsui Financial Group, Inc.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Card Co., Ltd.
OMC Card and Sumitomo
Mitsui Financial Group
to Form Strategic
July 27, 2007 – OMC Card, Inc. (OMC, President and COO: Shinji Ebata), Sumitomo
Mitsui Financial Group, Inc. (SMFG, President: Teisuke Kitayama), Sumitomo
Mitsui Banking Corporation (SMBC, President: Masayuki Oku), and Sumitomo Mitsui
Card, Co., Ltd. (SMCC, President: Koichi Tsukihara), in conjunction
of SMBCfs acquisition
of OMC stock, today reached an understanding toward forming a broad strategic
alliance on credit card business, including establishment of Strategy Development
top management and initiation of discussions.
Purpose of Understanding
years, the credit card industry has steadily expanded its market size,
leveraging transition in the clientfs life style and diversification
in the means of settlement ; has expected continue d th . At the same
time, with business
environment surrounding the industry dramatically changed , the industry
has reached a major turning point; accelerated consolidation
aiming at increased managerial efficiencies and competencies, increased
system-related investments due to development in technologies and services
such as e-money, and sophisticated
clientsf needs and
a revision to the Money-lending Business Restriction Law
and possibly Installment Sales Law .
such understanding of the environment, OMC and the
T hree SMFG group
companies (SMFG, SMBC, and SMCC) agreed to position OMC as the core strategic
entity in SMFGfs consumer financing business, and
to inaugurate discussions for strategic alliance with close collaboration of
management resources and operating base of OMC, SMCC and other SMFG group
companies, for establishing the number-one credit card entity in Japan.
its origin in retail business, has realized the best-in-class usage ratio
and expertise in acquiring , having
nurtured as a credit card company with a retail origin, people-oriented acquiring know-how , marketing
and business models. SMFG group companies , with extensive
client base, vast number of SMCCfs member store network s and IT development capabilities , will organically combine these and will strive to enhance each entity
value and the comprehensive strength as a group. Also, with intent to establish the number-one
credit card entity in
Description of Understanding
of Strategy Development Committee
intent to consummate the plan to establish the number one credit card entity in
Japan, OMC and the
T hree SMFG group companies will
Development Committee (Strategy
Development) among our top managements, and will further discuss the mid- and long-term
credit card strategy, including brand strategy, issuing, acquiring, consolidation and
strengthening of processing .
Establishment of Committee for Individual
the Strategy Development ,
we will discuss
items where short-term synergies are expected, such as mutual exploitation of client base , products and services,
cooperation in office and system operations, etc., and will work on an early
realization of an effect of the Individual Alliance .
to smoothly implement the purpose of the Understanding and enhance
effectiveness of Individual Alliance and other interactions, OMC and the
T hree SMFG Affiliates plan s to actively second personnel as operating officers and employees.
of Cooperative Relationship with Daiei
Daiei will maintain their cooperative relationship, along with the main purport
of the gMemorandum of Understanding regarding Credit Card Transactionsh,
concluded in May 2007. Also, in
discussing upon this Strategic Alliance, OMC and SMFG group companies will make
efforts to collaborate with existing partners, and encourage broad involvement
of other group companies of SMFG than mentioned above.