Yet the Deal is not cut and dried. However, someone doubts that the sale of the electricity network division of ABB to the Japanese industrial group Hitachi successfully on the stage. With a transaction volume of $ 11 billion, the Deal is one of the largest entered into by Japanese companies.
It is not a coincidence that, of all things, a Japanese group in Switzerland is on a shopping spree. 2018 have company from the Land of the rising sun with 184 billion dollars is so much money like never before for the purchase of foreign companies, such as data from the financial services provider Dealogic show. For the first time in four years Japan is in the ranking of the global market of Acquisitions and mergers (mergers & Acquisitions, M&A), again ahead of China.
Japanese M&A activities in the world
the transaction was Driven by volume from a mega deal. Last April, the Japanese pharmaceutical company Takeda announced its plans to take over the British biopharmaceutical company Shire for 62 billion dollars.
It was also Takeda, pushed in 2011, the largest transaction by a Japanese company in Switzerland. At that time, Nycomed, was acquired for $ 14 billion. “The example of Takeda shows, that in Japan currently, international Champions are built. Japan’s companies want to become global market leader,” says the longtime investment banker Heiko Horn, head for Citi the location of Zurich.
Largest M&A Deals by Japanese companies
In their M&A Outlook for 2019, the analysts of UBS, like JPMorgan predict that Japan’s buying fever is not the year only of this, but continue in the medium term. “The Japanese economy has no industry that can grow in the internal market. Therefore, the need to buy growth abroad, across all sectors,” says Hernan Cristerna, global M&A Co-head at JPMorgan, on request. As long as the economy is not anspringe growth in Japan, would look around for local companies abroad.
the M&A activities will be Supported by targeted measures of various financial institutions. “The company received financing terms from domestic commercial banks, the state-run Development Bank of Japan and the Bank of International Cooperation, which are highly attractive in international comparison. This is a very big advantage,” says Citi investment banker Horn. He expects in the future to continue transactions with a volume of between 5 and 10 billion dollars.
United States sought after than Europe
Mainly to Japan, puts on his shopping tour to North America. “The USA have the advantage that it is the world’s largest single market. In addition, the economic uncertainties are less pronounced there than in many other Parts of the world,” said Cristerna, JPMorgan. However, the strong protectionist political course of the US President, Donald Trump provides additional hurdles in acquisition desires.
again and again, Corporate Japan is looking around in Europe. The investment company Softbank showed last spring interested in a minority stake to Swiss Re, but finally withdrew. Recently, the beverage maker Asahi made in London for excitement, as he bought the brewery and Fuller the beer business for $ 330 million, and thus the Expansion in Europe continues. Already in 2016, the Asahi had acquired a variety of European beer brands such as Peroni or Pilsner Urquell from drinks giant SABMiller.
(financial and economic)
Created: 14.02.2019, 19:53 PM
