ID :
39008
Tue, 01/06/2009 - 12:06
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http://m.oananews.org//node/39008
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Foreign investors` M&As in Japan dive 82% in 2008
TOKYO, Jan. 5 Kyodo -
Mergers and acquisitions of Japanese corporations by foreign investors dwindled
in 2008, with the total amount spent diving 82.4 percent from the year before
to 530.3 billion yen, major M&A adviser Recof Corp. said Monday.
Recof attributed the plunge to the greater difficulties facing U.S. and
European funds in raising finance amid the global financial crisis.
But the combined cost of Japanese companies' acquisitions of and investments in
non-Japanese companies rose 2.6-fold year-on-year to 7.46 trillion yen, Recof
said.
The total includes Mitsubishi UFJ Financial Group Inc.'s $9 billion (around 900
billion yen) investment in Morgan Stanley.
Japanese companies intensified moves to aggressively invest in foreign entities
against the backdrop of the rising yen and abundant retained earnings, it said.
Mergers and acquisitions of Japanese companies by foreign investors dropped to
198 cases during the 12-month period from 309 cases in the previous year.
There was a notable upsurge in moves by foreign funds to pull out of the
Japanese market, such as the sale by Steel Partners Japan Strategic Fund of the
United States of all of its shares in major confectionery maker Ezaki Glico
Co., Recof said.
In contrast, mergers and acquisitions of Japanese companies involving Chinese
and South Korean companies increased to 78 cases.
Mergers and acquisitions in Japan involving Japanese companies dropped both in
terms of value and the number of cases, but there were some exceptions such as
the acquisition of Sanyo Electric Co. by Panasonic Corp.
The total number of cases of mergers and acquisitions within and outside of
Japan involving Japanese companies dropped 11.0 percent to 2,399 cases and the
total value remained almost flat at 12.43 trillion yen.
The pace of mergers and acquisitions decelerated particularly in and after
November as the effects of the global credit crisis began to emerge in the real
economy, Recof said.
On the outlook for 2009, a Recof official said, ''Buyouts of failed firms and
mergers and acquisitions related to industry realignment will increase against
the backdrop of the worsening real economy.''
==Kyodo
Mergers and acquisitions of Japanese corporations by foreign investors dwindled
in 2008, with the total amount spent diving 82.4 percent from the year before
to 530.3 billion yen, major M&A adviser Recof Corp. said Monday.
Recof attributed the plunge to the greater difficulties facing U.S. and
European funds in raising finance amid the global financial crisis.
But the combined cost of Japanese companies' acquisitions of and investments in
non-Japanese companies rose 2.6-fold year-on-year to 7.46 trillion yen, Recof
said.
The total includes Mitsubishi UFJ Financial Group Inc.'s $9 billion (around 900
billion yen) investment in Morgan Stanley.
Japanese companies intensified moves to aggressively invest in foreign entities
against the backdrop of the rising yen and abundant retained earnings, it said.
Mergers and acquisitions of Japanese companies by foreign investors dropped to
198 cases during the 12-month period from 309 cases in the previous year.
There was a notable upsurge in moves by foreign funds to pull out of the
Japanese market, such as the sale by Steel Partners Japan Strategic Fund of the
United States of all of its shares in major confectionery maker Ezaki Glico
Co., Recof said.
In contrast, mergers and acquisitions of Japanese companies involving Chinese
and South Korean companies increased to 78 cases.
Mergers and acquisitions in Japan involving Japanese companies dropped both in
terms of value and the number of cases, but there were some exceptions such as
the acquisition of Sanyo Electric Co. by Panasonic Corp.
The total number of cases of mergers and acquisitions within and outside of
Japan involving Japanese companies dropped 11.0 percent to 2,399 cases and the
total value remained almost flat at 12.43 trillion yen.
The pace of mergers and acquisitions decelerated particularly in and after
November as the effects of the global credit crisis began to emerge in the real
economy, Recof said.
On the outlook for 2009, a Recof official said, ''Buyouts of failed firms and
mergers and acquisitions related to industry realignment will increase against
the backdrop of the worsening real economy.''
==Kyodo
