Daiwa to buy Orix Bank for $2.3 billion in lending expansion

Daiwa Securities Group will buy Orix's banking unit for ¥370 billion ($2.3 billion), its largest acquisition in almost two decades, as Japan's second-biggest brokerage deepens its foray into commercial lending.

The Tokyo-based firm will finance the purchase of Orix Bank with its own funds, it said in a statement on Monday. Shares of Daiwa fell as much as 6.9% on Tuesday morning in Tokyo, while Orix jumped 12%.