Serial article regarding M&A on NNA (vol.112)

Previously, the article was about looking back at the trend of M&A deals in Japan in 2022. This article will focus on the trends of the TOP15 M&A deals involving Japanese companies in 2022. (All the following data is researched by RECOF)

The total amount of M&A deals involving Japanese companies from January to December 2022 was JPY 11.4 trillion, which decreased by 31.6% from the previous year. Then, among these TOP 15 deals, 11 of them are “IN-OUT” (deals in foreign countries conducted by Japanese companies) and “OUT-IN” (deals in Japan conducted by foreign companies) cross-border deals. Additionally. as the data below shows, these investing companies made a presence in M&A fields because they conducted six of these cross-border deals.

Price (JP Million YEN)Buyer/ InvestorIndustrySeller/ Target CompanyIndustrySchemeMarket
671,437Kohlberg Kravis RobertsFinanceHitachi Transport SystemLogistics & WarehouseAcquisitionOUT-IN
546,720Takeda PharmaceuticalPharmaceuticalsNimbus LakshmiService (Pharmaceuticals)AcquisitionIN-OUT
514,000Sony Interactive EntertainmentElectrical machineryBungieSoftware & IT (Gaming)AcquisitionIN-OUT
427,674Fund advised by Bain CapitalFinanceEvidentPrecision machineryAcquisitionOUT-IN
410,607Public Investment FundFinanceNintendoOther manufacturerCapital ParticipationOUT-IN
310,825EIG Global Energy PartnersFinanceTokyo Gas Australia Pty LtdElectricity & GasAcquisitionOUT-IN
267,200The Yokohama RubberRubber manufacturerTrelleborg Wheel SystemsRubber manufacturerAcquisitionIN-OUT
250,000Fortress Investment Group (Subsidiary of Softbank)Real estate & HotelSogo & SeibuDepartment storeAcquisitionIN-IN
230,000Kohlberg Kravis RobertsFinanceMitsubishi Corp. - UBS Realty Inc.Finance (Property management)AcquisitionOUT-IN
200,000Bain CapitalFinanceMASH HoldingsFiber (Fashion)AcquisitionOUT-IN
193,200SMBC Aviation CapitalServiceGoshawkService (Aircraft leasing)AcquisitionIN-OUT
182,457Management & Operation Fund managed by Itochu &Japan Industrial Partners(JIP)Sogo-shoshaHitachi Construction MachineryMachineryCapital ParticipationIN-IN
168,319Kintetsu Group HoldingsLogistics & WarehouseKintetsu World ExpressLogistics & WarehouseAcquisitionIN-IN
136,591Nippon Steel CorporationSteelNippon Steel Trading CorporationWholesale & RetailAcquisitionIN-IN
130,000Sony Corporation of AmericaElectrical machineryEpic GamesSoftware & IT(Gaming)Investment ExpansionIN-OUT

The largest M&A transaction was an acquisition of Hitachi Transport System by Kohlberg Kravis Roberts (KKR), the oldest US-based PE fund. The total amount of transactions was JPY 671.4 billion. Hitachi Transport System is known as Japan’s largest third-party logistics (3PL) provider, and likewise to Malaysia, they are also providing 3PL to a major retailer. Hitachi, their parent company, has been restructuring its group through M&A, known as “Carve-Out”. Thus, it is justifiable that this and the No.13 deal of Hitachi Construction Machinery might be the final stage of their restructuring. “Carve-Out” is one of the M&A schemes which cut away a part of the business of a company and their subsidiaries.

The second largest transaction was the acquisition of Takeda by Nimbus Lakshmi with a total value of JPY 546.7 billion. Nimbus Lakshmi is a subsidiary of Nimbus Therapeutics, a drug discovery company in the US. Nimbus Lakshmi is now developing a drug candidate for treating “Psoriasis”, a kind of skin disease. In addition to Psoriasis, this drug candidate is also evaluated as a treatment drug for several other autoimmune diseases. It seems that Takeda had decided to acquire Nimbus Lakshmi because they believe this drug candidate will become a major product following its current flagship product – “Entyvio (for ulcerative colitis)”. After Takeda acquired Shire, which is a leading pharmaceutical company in Ireland, in 2019, Takeda became one of the world’s top 10 pharmaceutical companies. But at the same time, since it has held a large amount of debt, they have been conducting Carve-Out its non-core business, such as its consumer healthcare business known as Alinamin to reduce its debt. Meanwhile, they have been acquiring start-up companies like this acquisition of Nimbus Lakshmi, to focus their resource on profitable prescription drugs and acquiring new drug candidates.

Check out our other articles...

About Us

We are a full-service consultancy firm for cross border mergers & acquisitions between Malaysia and Japan.

Sign up for our Newsletter

By submitting your mail here,  you agree to our Privacy Policy and Terms of Use.