Hokuetsu Paper To Buy Kishu Paper

Hokuestu paper, the 7th largest papermaker in Japan, announced that they will take full control of Kishu Paper, the 10th largest papermaker through an equity swap.

Hokuetsu was once the target for Oji paper’s hostile takeover bid. At that time, Hokuetsu obtained support from other corporations and was able to avoid being taken over by Oji.

The paper industry is one of many industries which are in need of re-organization. Many paper companies exist and have a difficult time competing both domestically and abroad with Asian rivals, which use cheap labor.

I hope this M&A prompts the industry to reorganize, otherwise all players in the Japanese paper industry will sink together.