Rakuten Group's shares experienced their largest intraday drop since May, falling by 6.7%, due to delays in the company's plans to consolidate its fintech operations. The Tokyo-based online shopping giant had aimed to integrate its banking, securities, credit card, and insurance businesses under one umbrella by October, but the timeline has been pushed.
- Rakuten's plan to consolidate its fintech operations, initially set for October, has been postponed to January due to regulatory challenges and considerations for minority shareholders' interests. This delay has raised concerns among investors.
- The company faces significant financial pressure with about 500 billion yen ($4.4 billion) in corporate bond redemptions due by 2025. The delay in the fintech restructuring adds to worries about Rakuten's ability to leverage the integration for financial stability before this deadline.
- Shares of Rakuten Group and Rakuten Bank fell sharply following the announcement. The parent company's continued financial losses, exacerbated by its costly venture into Japan's mobile carrier market, have further eroded investor confidence.
