M&As by Japan Firms Surging in Southeast Asia

Tokyo, Nov. 18 (Jiji Press)--Mergers and acquisitions by Japanese companies have been growing in Southeast Asia at a record-breaking pace so far this year, according to M&A consultancy Recof Corp. In January-October, Japanese companies acquired stakes in or took over Southeast Asian firms in 75 cases, more than a record high of 72 cases in the same 10-month period scored in 2011. Thus, the annual number looks set to exceed that year's total of 83 cases. Meanwhile, reflecting soured Japan-China relations, M&As by Japanese companies have been on the decline in China, with the number in 2013 seen to be the lowest in 12 years, Recof said. M&As by Japanese firms in the whole of Asia outside Japan, however, were brisk in January-October with 155 cases, ranking second after 173 cases in the same period of 2011, when an annual record was set, as an increase in Southeast Asia offset a decrease in China. M&As by Japanese companies in Asia peaked in 2011, when the yen jumped to a postwar high against the dollar. The Japanese currency remained strong in 2012. Although the yen's rapid weakening led the M&A pace this year to slow from the levels in the past two years, Japanese companies remain active in Asia. "M&As for securing not only production bases but also sales channels are on the rise," said Kengo Nishiyama, senior strategist at Nomura Securities Co. "M&As abroad by Japanese companies are expected to stay active if the yen's exchange rates stabilize at current levels," Nishiyama said. <8604> END