TOKYO -- Mizuho Financial Group and message app Line announced on Thursday that they are abandoning plans to develop a smartphone-based company called Line Bank, confirming Nikkei's earlier report, after cost overruns and delays allowed competitors to hit the market first.
The two companies said in November 2018 that subsidiaries Mizuho Bank and Line Financial would set up an online bank. Mizuho's stake in the preparatory company most recently stood at 66.6%, with Line holding the remaining 33.4%. Each company has 50% voting rights. Mizuho and Line will now move ahead to dissolve the preparatory company.