Following Brexit, many companies have been eyeing Frankfurt as a plausible option to base their operations in the European Union (EU). According to a Bloomberg report, Nomura Holdings, Inc. (NMR - Free Report) recently picked the German financial center as its headquarters.
Per people familiar with the matter, the company is likely to start looking for regulatory approvals and a suitable location for its office this month, the report mentioned. Also, it is expected to shift about 100 employees from its office in London to Frankfurt.
Nomura is the first Japanese firm to pick a city for its operations after Brexit. In the last fiscal year, Nomura reported profits from its overseas operations for the first time after cutting almost 900 jobs in Europe and the United States.
Another investment manager in Japan, Daiwa Securities Group Inc. , is considering Frankfurt and Dublin as the base for its EU operations. Further, Goldman Sachs Group (GS - Free Report) and Morgan Stanley (MS - Free Report) are also reportedly looking for office space in Frankfurt.
Both Japanese companies are moving ahead with the relocation despite Theresa May’s loss in elections this month. Per the report, her loss in elections is likely to help U.K. get a softer Brexit deal that shall reduce the impact on industrial operations.
The stock has gained 48.3% over the last one year, outperforming the Financial – Investment Management industry’s rally of 39.3%.
Currently, Nomura carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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