ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business

Japanese firms step up overseas M&A

Number of deals hits record in first half as smaller companies get into the game

With SoftBank CEO Masayoshi Son taking the lead, Japanese companies have been engaging in mergers and acquisitions at record levels.

TOKYO -- Japanese corporations made 339 overseas mergers and acquisitions during the first half of the current Japanese fiscal year, the highest number of deals in the April-September period since records began in 1985.

The number of deals was up 14% from a year earlier, according to Recof, a Tokyo-based M&A consultancy which calculated the estimate from publicly available documents and interviews.

However the total value of the deals declined more than 20% to 4.2 trillion yen ($37.2 billion), although the comparable period last year saw megadeals by SoftBank Group and others, which inflated the figure.

The average price of each overseas deal fell 40% from a year earlier to 24.4 billion yen, as Japanese businesses took on more midsize targets. There were 45 midsized deals valued between 10 billion yen and 100 billion yen, a 25% increase from a year earlier.   

That trend was driven by the activity of companies that traditionally rely on internal demand but are now seeking access to overseas sales channels. For example, staffing group Persol Holdings announced in July a 69.1 billion yen buyout of Australian recruiter Programmed Maintenance Services, while Tokyo Century is spending 67 billion yen to acquire 20% of U.S. aircraft leaser Aviation Capital Group in a deal that could close in December.

"There are more [Japanese] midsize companies that are forming a list of potential acquisition targets, and independently collecting information from overseas funds and other sources," said Koichi Tamura, executive officer at Deloitte Tohmatsu Financial Advisory.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media