Record Number of Foreign Mergers & Acquisitions by Japanese Firms

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According to a recent article in the Japan times, the amount of mergers and acquisitions of foreign companies by Japanese firms is hitting record highs and shows no signs of slowing down.

This year alone, Japan’s M&As have gone up 7.4%. Though still at 364, at this rate thier final total for the year is expected to approach if not surpass their record high of 463 in 1990.

Among these acquisitions include the acquisition Sprint, a major player in the US mobile phone industry by Japanese Telecommunication and Internet Giant Softbank.

To read more on this particular acquisition refer to this previous blog post. click here. 

Other examples include the acquisition of the major advertising agency Dentsu Inc.’s acquistion of British peer Aegis Group PLC, and Daikin Industries Ltd.’s acquisition of thier U.S. rival Goodman Global Inc.

Though very common now, Japanese acquisitions were originally very controversial, especially in the US marketplace. Their expansions were often referred to as invasions and their acquisitions were often marked as putting American traditions and values at risk. Two major controversial acquisitions in Japanese history include the purchase of Colombia Pictures Entertainment by Sony and the purchase of the Rockefeller Center by Mitsubishi Estate.

A large supporter in the advancement of recent Japanese M&As can the traced to the increasingly strengthening Japanese yen that makes purchasing foreign business a cheaper option. However,  one of the major concerns moving forward though is Chinese pushback regarding Japanese products due to territorial disputes.

To read the full article go to http://www.japantimes.co.jp/text/nn20121028a2.html

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