The was a leading Japanese
keiretsu
A is a set of companies with interlocking business relationships and shareholdings. In the legal sense, it is a type of informal business group that are loosely organized alliances within the social world of Japan's business community. The ''ke ...
, based in
Osaka
is a designated city in the Kansai region of Honshu in Japan. It is the capital of and most populous city in Osaka Prefecture, and the third most populous city in Japan, following Special wards of Tokyo and Yokohama. With a population of 2. ...
, between
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
and the
Japanese asset price bubble
The was an economic bubble in Japan from 1986 to 1991 in which real estate and stock market prices were greatly inflated. In early 1992, this price bubble burst and Japan's economy stagnated. The bubble was characterized by rapid acceleration ...
in the early 1990s. It remains in existence as a jointly held company called .
Sanwa Bank
was a major Japanese bank headquartered in Osaka, which operated from 1933 to 2002. It merged with Tokai Bank to form UFJ Bank (now part of MUFG Bank). In the 1990s, it was the most profitable bank in the world, and second-largest in terms of asse ...
was a major financier for the textile industry in the 1950s. After arranging an affiliation between Ube Industries and Nippon Rayon in 1954, Sanwa began promoting industrial transactions between its major customers, formalizing the process in the early 1960s through the establishment of special promotion units. In 1968, Sanwa arranged the merger of the Nissho and Iwai trading companies to form Nissho Iwai (now
Sojitz
is a ''sogo shosha'' (general trading company) based in Tokyo, Japan. It is engaged in a wide range of businesses globally, including buying, selling, importing, and exporting goods, manufacturing and selling products, providing services, and pl ...
), creating a large
general trading company to cater to its customers. The three largest members of the group (
Hitachi Shipbuilding,
Ube Industries
is a Japanese chemical company manufacturing chemicals, plastics, battery materials, pharmaceuticals, cement, construction materials, and machinery.
The former company name is
The company was founded in 1897 when Sukesaku Watanabe —an indus ...
and
Teijin
is a Japanese chemical industry, chemical, pharmaceutical industry, pharmaceutical and information technology company. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & ...
) had relatively independent positions with no cross-shareholdings. The development of this group paralleled the development of the
Fuyo Group
is a Japanese ''keiretsu'' descended from the Yasuda zaibatsu, Asano zaibatsu and Okura zaibatsu. They are major business grouping in Japan up to World War II. In 1948, Yasuda was dismantled, with its key financial arm Yasuda Bank becoming Fuj ...
and
DKB Group The or the Dai-Ichi Kangyo Group was the largest Japanese keiretsu in the late 1990s.
The group emerged after World War II and coalesced around the Dai-Ichi Kangyo Bank. Two of DKB's largest clients, Kawasaki Heavy Industries and Furukawa Electric ...
around alliances between major banks and trading companies.
The Sanwa Group held a collective exhibition at
Expo '70
The or Expo 70 was a world's fair held in Suita, Osaka Prefecture, Japan between March 15 and September 13, 1970. Its theme was "Progress and Harmony for Mankind." In Japanese, Expo '70 is often referred to as . It was the first world's fair ...
in Osaka called . Later that year, 31 Sanwa Group members formed Midori-kai as a joint venture company. It eventually grew to 157 members, serving as a common HR, insurance and business support platform.
After the stock market and real estate crash in the 1990s, the group's core bank,
Sanwa Bank
was a major Japanese bank headquartered in Osaka, which operated from 1933 to 2002. It merged with Tokai Bank to form UFJ Bank (now part of MUFG Bank). In the 1990s, it was the most profitable bank in the world, and second-largest in terms of asse ...
(三和銀行) was laden with bad debts. In 2001, it merged with
Tokai Bank
Tōkai ( 東海, literally ''East Sea'') in Japanese may refer to:
* Tōkai region, a subregion of Chūbu
* Tōkai, Ibaraki, a village, also known as "Tokaimura" (Tokai-village)
* Tōkai, Aichi, a city
* Tōkai University, a private university in T ...
and
Toyo Trust and Banking Company to form
UFJ Holdings UFJ, which stands for the United Financial of Japan, is used in the former companies of UFJ Bank, UFJ Group, and UFJ Holdings. These related institutions disappeared after the merger of The Bank of Tokyo-Mitsubishi and UFJ Bank in 2005. UFJ Bank its ...
(UFJホールディングス), with the
UFJ Group UFJ, which stands for the United Financial of Japan, is used in the former companies of UFJ Bank, UFJ Group, and UFJ Holdings. These related institutions disappeared after the merger of The Bank of Tokyo-Mitsubishi and UFJ Bank in 2005. UFJ Bank its ...
(UFJグループ) taking over from Sanwa Group. Later,
UFJ Holdings UFJ, which stands for the United Financial of Japan, is used in the former companies of UFJ Bank, UFJ Group, and UFJ Holdings. These related institutions disappeared after the merger of The Bank of Tokyo-Mitsubishi and UFJ Bank in 2005. UFJ Bank its ...
merged with
Bank of Tokyo-Mitsubishi to form
Mitsubishi UFJ Financial Group
is a Japanese bank holding and financial services company headquartered in Chiyoda, Tokyo, Japan.
MUFG holds assets of around US$3.1 trillion as of 2016 and is one of the "Three Great Houses" of the Mitsubishi Group alongside Mitsubishi Corpor ...
.
References
External links
Midori Kai
Conglomerate companies of Japan
Defunct companies of Japan
Keiretsu
Midori-kai
Companies based in Osaka Prefecture
Companies established in the 1940s
Conglomerate companies disestablished in 2001
1940s establishments in Japan
Japanese companies disestablished in 2001
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