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Japan Post mulling $3.66bn write-off for fiscal 2016

One-time hit from Australian acquisition could lead to net loss

Japan Post Holdings has failed to deliver value to shareholders with the acquisition of Toll Holdings.

TOKYO -- Japan Post Holdings is discussing a write-down of as much as 400 billion yen ($3.66 billion) for the year ended March 31 to remove goodwill stemming from the acquisition of an Australian logistics unit from its balance sheet.

Japan Post snapped up Australia's Toll Holdings in May 2015 for 620 billion yen (around $5 billion at the time), paying well over book value in expectation of strong future earning power. This drove up the group's goodwill to a dizzying 386 billion yen as of December. Japan Post's board will decide how to handle the massive goodwill next week.

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