Japanese companies have licked the wounds of 25 years after they went to great losses from its international efforts in the 80s. After a record surplus hunt big companies on the new international investments.
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Monday news broke that Mitsubsihi Corp. are willing to pay 96 dollars per share for the Norwegian aquaculture company Cermaq. It rates the company at 8.88 billion – over one billion more than Friday’s closing price.
Mitsubishi Group is one of the few remaining large Japanese conglomerates that dominated the country’s economy through much of the 1900s.
Although companies like Mitsubishi Motor, Mitsubishi Electric, Mitsubishi Heavy Industries and Mitsubishi Estate operates independently, there is close cooperation through the unique Japanese keiretsu model.
One Friday a month meet CEOs of the 25 largest companies in the group at Mitsubishi Village next to the Imperial Palace in Tokyo. It discussed strategies and cooperation of the entire group.
Looking for acquisitions
The last two years have conversations often focused on acquisitions and international expansion and consolidation. Company Group has through mergers and forced consolidation of financial institutions managed to get up.
15 years ago, licked Mitsubishi group wounds after a number of very large and expensive acquisitions in the United States through the 1980s. Mitsubishi Estate acquired 51 percent of Rockefeller Center in New York and numerous other prestigious buildings. Everything was sold later – with heavy losses.
As recently as last week confirmed Mitsubishi UFJ, which is Japan’s largest bank in terms of assets that they hunt for international acquisitions to over 50 billion in the United States and Asia. The Bank’s core capital that is significantly above the minimum.
The goal has since 2007 been becoming one of the ten largest financial institutions in the United States. It is accordingly defined goals the other companies in the Mitsubishi group has set itself the past few years. Earlier this year, they bought a 72 percent stake in the Thai bank Bank of Ayudhya for $ 5.2 billion.
Although the United States still beckons for the financial institution Mitsubishi UFJ this is also to get a foothold in the world’s most important capital market. It is the emerging markets that are most important.
Mitsubishi conveys raw materials from emerging markets, but they also see potential in selling everything from cars, food and services to emerging markets in Asia, Africa and Latin America.
Getting the help of a weak exchange rate
In recent years, the Mitsubishi companies deliver record results – not least helped by a 23 percent lower yenkurs than it was two years ago. The money has flowed into.
At the end of Japanese companies had bank deposits of 2,950 billion dollars – a new record. Financial institutions are not included in this overview of the finance ministry.
There has never been cheaper or easier for Japanese companies to finance acquisitions. The government, with its Abenomics policy, pushes companies to expand and bring up the activity. Banks have been given clear orders from the central bank to raise new loans.
Yesterday’s acquisition of Cermaq will not be the last. The Japanese population is shrinking and the country’s big companies are forced again to go abroad for new growth. This is hardly the last time a Norwegian companies get Japanese on the door.
Morten Iversen’s DN Life Asia correspondent.
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