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## 19. Business combinations and related matters 

Detail of business combinations and related matters for the year ended March 31, 2012 are as follows. 

## Outline of the business combination 

(i) Name of the acquired company and its business 

Daiwa Office Investment Corporation (Investment management business to the specified assets) 

(ii) Main reasons for the business combination 

Daiwa PI Partners Co. Ltd., a consolidated subsidiary of the Company, executed a loan agreement with K.K. Columbus and provided a loan secured by 68,905 investment units (17.41% of the total issued and outstanding investment units) issued by Daiwa Office Investment Corporation and held by K.K. Columbus. Daiwa PI Partners Co. Ltd. decided to foreclose the security interest pursuant to the provision of the loan agreement and acquired 68,905 units issued by Daiwa Office Investment Corporation. The Company believes that it will be able to enhance the value of the entire Group by supporting and real- izing the growth of Daiwa Office Investment Corporation by making available the corporate resources of the Group. 

(iii) Date of business combination 

February 29, 2012 (deemed acquisition date) 

(iv) Legal form of the business combination 

Acquisition of investment units of Daiwa Office Investment Corporation 

(v) Ratio of voting rights the Group has acquired 

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## Period of the acquired company’s financial results included in the consolidated financial statements 

The business before the date of business combination (February 29, 2012 is considered to be the acquisition date) is reflected in the investment profit under the equity method. 

## Acquisition cost of the acquired company 

Fair value of investment units of Daiwa Office Investment Corporation owned before business combination: 

Fair value of investment units of Daiwa Office Investment Corporation additionally acquired at the date of business combination: 

Acquisition cost of the acquired company: 

## Difference between acquisition cost of the acquired corporation and total acquisition cost of individual transactions leading to acquisition 

Gains on step acquisitions: ¥2,118 million ($25,829 thousand) 

## Negative goodwill and reason for recognizing negative goodwill 

(i) Amount of negative goodwill: 

(ii) Reason for recognizing negative goodwill 

The market price of the assets and liabilities of the acquired corporation exceeds the acquisition cost. 

¥23,878 million ($291,195 thousand) 

¥14,704 million ($179,317 thousand) 

¥38,582 million ($470,512 thousand) 

¥35,266 million ($430,073 thousand) 

## Amount of assets and liabilities acquired on the day of the business combination and reconciliation between the acquisition cost of investment units and the proceeds from purchase 

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