In the previous article, we explained that although the number and value of cross-border M&A decreased, the number and value of M&A by Japanese companies in 2020 decreased only by 8.8% and 17.2% respectively, to 91.2% and 82.8% compared to the previous year. Let’s take a look at the major large-scale M&A by Japanese companies in FY2020.
1. Major M&A by Japanese companies in FY2020 (Resource: RECOF research)
| Ranking | Size (JPY Million) | Parties (buyer / target company) ※For simplicity, some company names are given as the names of the parent company, etc. | Market | Date (2020) |
|---|---|---|---|---|
| 1 | 4,200,000 | NVIDIA / Arm (sold by Softbank) | Out-In | 9/14 |
| 2 | 2,217,600 | Seven & i / Speedway (American convenience store) | In-Out | 8/3 |
| 3 | 1,285,139 | Wuthelam (Singapore) / Nippon Paint | Out-In | 8/21 |
| 4 | 299,816 | Mitsubishi UFJ Lease & Hitachi Capital | In-In | 9/25 |
| 5 | 242,000 | Blackstone / Takeda Consumer Healthcare | Out-In | 8/25 |
| 6 | 238,000 | NEC / Avaloq (financial software company in Switzerland) | In-Out | 10/5 |
| 7 | 214,861 | Nitori / Shimachu | In-In | 10/30 |
| 8 | 200,000 | Toyota Motor / NTT (cross-shareholding) | In-In | 3/24 |
| 9 | 132,471 | JRF Investment Corporation / MMI Investment Corporation | In-In | 8/29 |
| 10 | 132,267 | SMFL Mirai Partners / Kenedix | In-In | 11/24 |
| 11 | 122,200 | Sony / Ellation Holdings (animation creator in USA) | In-Out | 12/10 |
| 12 | 120,844 | Mitsui Fudosan / Tokyo Dome | In-In | 11/27 |
| 13 | 110,800 | Ichigo Trust (Singapore) / Japan Display | Out-In | 2/1 |
| 14 | 110,166 | Nichii Gakkan MBO | Out-In | 5/11 |
| 15 | 108,643 | Arcland Sakamoto / LIXIL Viva | In-In | 6/10 |
Of the top 15 deals, seven were domestic In-In deals, five were cross-border Out-In deals (acquisition of a Japanese company by a foreign company), and three were In-Out deals (acquisition of a foreign company by a Japanese company).
It is noteworthy that except for the cross-shareholdings of Toyota Motor Corporation and NTT, which ranked 8th, the manufacturing deals (1st, 3rd, 5th and 13th) were all Out-In deals. In terms of timing, 11 deals were implemented in the second half of the year from July onward, suggesting that many deals scheduled for the first half of the year in particular had to be rescheduled for the second half of the year due to the effects of the Cov-19 infection.
2. Major Acquisition of Subsidiary Shares by Japanese Companies in FY2020
| Ranking | Size (JPY Million) | Parties (buyer / target company) |
|---|---|---|
| 1 | 4,257,794 | NTT / NTT DoCoMo |
| 2 | 581,556 | ITOCHU / FamilyMart |
| 3 | 531,817 | Hitachi / Hitachi High-Tech Corp |
| 4 | 396,034 | Sony / Sony Financial Holdings |
As there are negative effects of parent-subsidiary listings, 13 of the 57 TOB (tender offer for shares) cases filed were for the dissolution of parent-subsidiary listings, such as the four cases mentioned above; the total number of TOB cases increased by nine from 48 in 2019.