Business divestitures by Japanese companies are picking up, with overseas M&A expanding to 326 deals worth ¥6.2 trillion. M&A involving Japanese companies totaled 3,883 deals in January–September, with a total value of ¥22 trillion, down year on year.
M&A involving Japanese companies totaled 3,883 deals in January–September this year, the highest figure since statistics began in 1985. The total value was ¥22 trillion, down approximately 20% year on year. Acquisitions by foreign companies totaled 326, with transaction value reaching ¥6.2 trillion. Transactions involving investment firms totaled ¥5.5 trillion.
Japanese companies are increasingly selling businesses to raise their corporate value, and acquisitions by overseas companies are becoming more active. Renesas Electronics is expected to record a gain on the sale of its timing semiconductor business to U.S.-based SiTime in the July–September quarter.
The Ministry of Economy, Trade and Industry has issued guidelines on responses to acquisition proposals and is encouraging listed companies to disclose information. A weaker yen is supporting the inflow of overseas capital, and there have been periods in which movements in the yen-dollar exchange rate have increased the yen value of investment funds.
Overseas investment firms have secured additional funding. Apollo Global Management acquired 日本板硝子 for ¥590 billion, Warburg Pincus acquired J.S.B. for approximately ¥200 billion, and EQT is competing to acquire カカクドットコム. The planned increase in the minimum income tax rate from next year has also been cited as a factor encouraging founders to sell their businesses.
M&A deals aimed at business succession totaled 833, exceeding the previous year and reaching a record high for January–September. The potential for M&A activity to increase from next year onward has been noted.