Japan's Overseas M&As Hit Record High in H1 2012

The number of overseas M&As by Japanese businesses in the first 6 months of 2012 rose by 15% from H1 2011 to 262, topping the previous record of 247 in 1990. The M&A deals totaled JPY 3.49 trillion (USD 44 billion), up 9% from a year earlier. The tally is the second highest after the 4.46 trillion yen in H1 2006, according to M&A advisory firm Recof Corp.

The first half of this year featured large-scale acquisitions by trading houses. Mitsubishi Corp. paid JPY 230 billion (USD 2.9 billion) to acquire concession rights to a natural gas field in Canada. Marubeni Corp. purchased major U.S. grain firm Gavilon LLC for roughly JPY 300 billion (USD 3.8 billion).

Mid-tier regional companies also acquired foreign companies as well. Taiho Kogyo Co. acquired the No. 1 Chinese aluminum bearing maker, while Chubu Yakuhin Co., a drugstore chain operator obtained a stake in a Chinese drugstore company. In addition, smaller firms also appear to have acquired overseas businesses to follow their customers' moves. Of the M&As with disclosed price tags, small deals worth less than JPY 1 billion (USD 12million) accounted for nearly 40%.