ID :
29182
Sat, 11/08/2008 - 22:35
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https://oananews.org//node/29182
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Value of M&As by Japanese firms in Jan.-Oct. hits record high
TOKYO, Nov. 8 Kyodo -
The total value of mergers and acquisitions of overseas companies by Japanese
firms in the January-October period hit a record 6.67 trillion yen, about 3.7
times a year earlier, a private survey showed Saturday.
The figures suggest Japanese companies are stepping up efforts to buy overseas
firms, aided by a stronger yen and worldwide stock price falls amid the global
financial crisis.
Such a trend comes at a time when investment funds in the United States and
Europe, which had spearheaded corporate buyouts, are scaling back their
business in the face of the financial meltdown.
According to the survey by RECOF Corp., a company researching and brokering
mergers and acquisitions, the headline figure includes investment by Japanese
firms in overseas companies.
The annual value of mergers and acquisitions of overseas companies by Japanese
firms logged a record-high 8.61 trillion yen in 2006, RECOF said.
But the pace during the January-October period of this year has already
surpassed that of 2006, it said.
The largest case in terms of value was Mitsubishi UFJ Financial Group Inc.'s $9
billion investment to buy a 21 percent stake on a fully diluted basis in major
U.S. investment bank Morgan Stanley.
The second-largest case was an $8.8 billion friendly tender offer by Takeda
Pharmaceutical Co. to acquire all shares in U.S. biotechnology-based drug firm
Millennium Pharmaceuticals Inc., according to the survey.
Although Japanese manufacturers have been hit by the global economic downturn,
some domestic firms, particularly those making profits on the back of rising
energy and material costs, remain bullish about further investment to acquire
overseas companies.
Marubeni Corp. President Teruo Asada said he believes now is a golden
opportunity to purchase overseas firms.
Sumitomo Corp. said it can raise funds of about 1 trillion yen by cash deposits
and bank loans. Noriaki Shimazaki, Sumitomo's vice president, said the major
trading house is allowed to use more money for investment.
In addition to trading houses, food manufacturers and financial firms are also
planning to boost investment to acquire overseas companies.
Given the shrinking domestic market, Suntory Ltd. announced last month that it
has decided to buy all the shares in New Zealand soft drink maker Frucor
Beverages Group Ltd. for some 75 billion yen from major French food processor
Groupe Danone SA, Furcor's parent company.
Masami Hamaguchi, senior strategist at Daiwa Institute of Research, said
Japanese companies with ample cash at hand, such as food makers and drug firms,
are expected to remain aggressive about mergers and acquisitions.
==Kyodo
The total value of mergers and acquisitions of overseas companies by Japanese
firms in the January-October period hit a record 6.67 trillion yen, about 3.7
times a year earlier, a private survey showed Saturday.
The figures suggest Japanese companies are stepping up efforts to buy overseas
firms, aided by a stronger yen and worldwide stock price falls amid the global
financial crisis.
Such a trend comes at a time when investment funds in the United States and
Europe, which had spearheaded corporate buyouts, are scaling back their
business in the face of the financial meltdown.
According to the survey by RECOF Corp., a company researching and brokering
mergers and acquisitions, the headline figure includes investment by Japanese
firms in overseas companies.
The annual value of mergers and acquisitions of overseas companies by Japanese
firms logged a record-high 8.61 trillion yen in 2006, RECOF said.
But the pace during the January-October period of this year has already
surpassed that of 2006, it said.
The largest case in terms of value was Mitsubishi UFJ Financial Group Inc.'s $9
billion investment to buy a 21 percent stake on a fully diluted basis in major
U.S. investment bank Morgan Stanley.
The second-largest case was an $8.8 billion friendly tender offer by Takeda
Pharmaceutical Co. to acquire all shares in U.S. biotechnology-based drug firm
Millennium Pharmaceuticals Inc., according to the survey.
Although Japanese manufacturers have been hit by the global economic downturn,
some domestic firms, particularly those making profits on the back of rising
energy and material costs, remain bullish about further investment to acquire
overseas companies.
Marubeni Corp. President Teruo Asada said he believes now is a golden
opportunity to purchase overseas firms.
Sumitomo Corp. said it can raise funds of about 1 trillion yen by cash deposits
and bank loans. Noriaki Shimazaki, Sumitomo's vice president, said the major
trading house is allowed to use more money for investment.
In addition to trading houses, food manufacturers and financial firms are also
planning to boost investment to acquire overseas companies.
Given the shrinking domestic market, Suntory Ltd. announced last month that it
has decided to buy all the shares in New Zealand soft drink maker Frucor
Beverages Group Ltd. for some 75 billion yen from major French food processor
Groupe Danone SA, Furcor's parent company.
Masami Hamaguchi, senior strategist at Daiwa Institute of Research, said
Japanese companies with ample cash at hand, such as food makers and drug firms,
are expected to remain aggressive about mergers and acquisitions.
==Kyodo
