Daiwa Securities Group Inc. has acquired Orix Corp.’s banking unit for ¥370 billion ($2.3 billion), its biggest acquisition in nearly two decades. The move marks Japan’s second-largest brokerage deepening its commercial lending operations.

The deal aligns with Daiwa’s strategic expansion into commercial lending, a sector it aims to strengthen as part of its broader financial services portfolio. This acquisition follows Orix Corp.’s earlier sale of its bank holding company to Daiwa in 2017, but the latest move represents a more focused bet on lending infrastructure.

The $2.3 billion investment underscores Daiwa’s commitment to enhancing its lending capabilities, potentially reshaping competition in Japan’s brokerage sector. This acquisition may lead to increased lending capacity and improved service offerings in commercial markets.

Daiwa’s move highlights the growing importance of commercial lending in Japan’s financial landscape, as brokers seek to diversify beyond traditional brokerage services.