It′s the creation of a brokerage giant.
Korea′s fourth largest securities firm Mirae
Asset has been named the preferred bidder
for a stake in the nation′s second－largest，
Daewoo Securities，... paving the way to
become the country’s biggest brokerage by
assets.
The new entity has its eyes on not only becoming
the biggest in the country but a global investment
bank that represents Asia.
Kim Hyun－bin reports.
Mirae Asset Group has been chosen as the preferred
bidder to take over Daewoo Securities.
If taken it will create the country′s largest
brokerage firm with a combined capital of
6－point－8 billion U.S. dollars surpassing
the previous leader NH Investment and Securities.
Market watchers expect the marriage to create
a positive effect as Daewoo Securities has
expertise in investment banking and retail
services benefiting Mirae Asset′s overseas
investments.
″It will enhance competition for local brokerage
firms as well as pioneering new markets overseas.″
Competition is expected to become fierce among
large brokerage firms as deregulation of overseas
investments is scheduled to occur next year，
thus making a company′s capital power a
crucial factor.
″Brokerage firm′s capital power strengthens
sales capabilities.
More capital gives an edge in sales.
Many small and mid－size brokerage could
M＆A into larger firms.″
Although Mirae Asset was successful in becoming
the preferred bidder， it still has many
barriers to overcome.
Mirae reportedly offered two－point－one
billion dollars for Daewoo Securities，...
30 percent more than the market value.
Experts believe its interests alone will come
up to over 22 million dollars a year.
Once taken， if Mirae Asset doesn′t find
visible benefits in the near future， it
could be stuck in a buyer′s remorse.
Kim Hyun－bin， Arirang News
