Feb 22nd - Japanese M&A Deals In Asia Jump 83% In 2010

Japanese companies are ramping up mergers and acquisitions in the rest of Asia, eager to tap the region's dynamic growth.

Japanese acquisitions of Asian businesses surged 83% on the year to a record 274 deals in 2010, according to Thomson Reuters. These deals accounted for 52% of all overseas M&As, including investments, by Japanese companies -- the highest level in seven years.

On a value basis, Japanese M&As in Asia increased 3% to roughly 890 billion yen.

Faced with a shrinking domestic market as the population ages, Japanese firms hope to tap into Asia's brisk consumer spending. Kirin Holdings Co. obtained a stake in a Singaporean soft drink company, while Nippon Paper Group Inc. invested in a Chinese paperboard company. Toyo Tire & Rubber Co. has acquired a Malaysian tire manufacturer.

Rengo Co is scheduled to acquire a trio of Vietnamese companies in the paperboard field.

This year so far, Japanese companies have conducted 32 M&A deals in Asia.

At the same time, a growing number of cash-flush Asian companies are buying Japanese businesses. Such M&As in 2010 increased 24% on the year to a record 73, while the value of these deals surged 87% to 117.9 billion yen.

Many of these companies are targeting Japanese firms' technologies and brand recognition to further their business growth.

Real estate purchases in Japan by Southeast Asian investors were conspicuous, including the acquisition of a Hokkaido resort by a Malaysian firm. Just this month, Panasonic Corp. said it will sell its nickel-metal-hydride battery business to a Chinese battery maker.