Japan Post may write down $3.7 bn after Australian acquisition

Japan Post Holdings Co is considering writing down as much as 400 billion yen ($3.7 billion) in the year ended 31 March on goodwill from its acquisition of Australian logistics unit Toll Holdings, the Nikkei business daily reported today.

Japan Post's group net profit for the year just ended is estimated at 320 billion yen, and logging a loss of up to 400 billion yen could lead to its first net loss since Japan began privatising the postal system, the daily said.

Japan Post, a conglomerate that spans postal delivery, banking and insurance, made an unprecedented three-way initial public offer in November 2015.

The company said on Thursday it is considering whether it needs to book an impairment loss related to Toll Holdings, which it acquired in 2015 for 620 billion yen.

Nikkei Business magazine reported earlier this week that Japan Post was considering posting a massive impairment loss because the acquisition had not created synergies and Toll's earnings had been hurt by an economic slowdown.

Japan Post Holdings Co, Ltd had 200,516 full-time employees as of 30 September 2015. The number of employees excludes employees assigned to other companies by Japan Post Co Ltd. but includes employees assigned to Japan Post Co Ltd by other companies.

Japan Post had 13 regional offices, 24,464 post offices, 10 training institutes and customer service centers, 4 logistics centers, international quality control and accounting center, postal items verification center, credit management center, payment center, Yu-Pack accounting center, employee compensation and welfare center, Tokyo Logistics Center and 2 funds management centers.

Major line of business include postal operations, banking counter operations, insurance counter operations, sales of documentary stamps, operations consigned by local government entities, bank and life and non-life insurance agency services other than already mentioned, domestic and international logistics business, real estate business and merchandise sales.