Sumitomo Corporation has pursued large-scale acquisitions and expanded its investment capacity to ¥3 trillion. The company has indicated that it will pursue its growth strategy while reshuffling its assets toward the final year of its medium-term management plan.
Sumitomo Corporation has indicated that it expanded its investment capacity to ¥3.0 trillion as it seeks record-high profit in the fiscal year ending March 2027, the final year of its medium-term management plan. Its cumulative investment to date has reached ¥1.9 trillion, and the company emphasized its strong intention to maintain momentum and pursue further investments.
The change in policy is underpinned by a growth strategy centered on the company’s strengths. The company indicated that it will work simultaneously to improve capital efficiency and transform its portfolio. Specific large-scale acquisitions cited included the approximately ¥320 billion acquisition of a U.S. aircraft leasing company and the approximately ¥880 billion acquisition of the remaining shares of SCSK to make it a wholly owned subsidiary. The plan is to execute these transactions through a new company.
As part of its asset reshuffling, the company is moving to dispose of assets that have been prone to generating losses over the long term, and has decided to sell large impaired assets such as Ambatovy. This will help create a path for continued investment of growth capital while avoiding situations in which large losses incurred in the past are repeated.