Daiwa House Industry is reportedly pursuing a series of M&A transactions against a backdrop of ¥3 trillion in interest-bearing debt, with sales in the US expected to reach approximately ¥1 trillion.
The competitive landscape among Japanese companies pursuing M&A involving overseas businesses is coming into view. In the US, the three major Japanese housing companies, Sumitomo Forestry, Sekisui House and Daiwa House Industry, are competing fiercely for market share. The article discusses how the ability to raise funds is becoming a key determinant of growth.
Daiwa House Industry is said to be pursuing a series of M&A transactions after building up interest-bearing debt to around ¥3 trillion, highlighting how changes in the interest-rate environment affect its ability to raise funds. The example of medical-device company Terumo is also presented, underscoring the importance of funding strategy.
Sales in the US market are expected to reach approximately ¥1 trillion, and this is viewed as becoming the cornerstone of the company's international expansion.