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/ Investor||Industry||Seller/ Target Company||Industry||Scheme||Market|
|671,437||Kohlberg Kravis Roberts||Finance||Hitachi Transport System||Logistics & Warehouse||Acquisition||OUT-IN|
|546,720||Takeda Pharmaceutical||Pharmaceuticals||Nimbus Lakshmi||Service (Pharmaceuticals)||Acquisition||IN-OUT|
|514,000||Sony Interactive Entertainment||Electrical machinery||Bungie||Software & IT (Gaming)||Acquisition||IN-OUT|
|427,674||Fund advised by Bain Capital||Finance||Evident||Precision machinery||Acquisition||OUT-IN|
|410,607||Public Investment Fund||Finance||Nintendo||Other manufacturer||Capital Participation||OUT-IN|
|310,825||EIG Global Energy Partners||Finance||Tokyo Gas Australia Pty Ltd||Electricity & Gas||Acquisition||OUT-IN|
|267,200||The Yokohama Rubber||Rubber manufacturer||Trelleborg Wheel Systems||Rubber manufacturer||Acquisition||IN-OUT|
|250,000||Fortress Investment Group (Subsidiary of Softbank)||Real estate & Hotel||Sogo & Seibu||Department store||Acquisition||IN-IN|
|230,000||Kohlberg Kravis Roberts||Finance||Mitsubishi Corp. - UBS Realty Inc.||Finance (Property management)||Acquisition||OUT-IN|
|200,000||Bain Capital||Finance||MASH Holdings||Fiber (Fashion)||Acquisition||OUT-IN|
|193,200||SMBC Aviation Capital||Service||Goshawk||Service (Aircraft leasing)||Acquisition||IN-OUT|
|182,457||Management & Operation Fund managed by Itochu &Japan Industrial Partners(JIP)||Sogo-shosha||Hitachi Construction Machinery||Machinery||Capital Participation||IN-IN|
|168,319||Kintetsu Group Holdings||Logistics & Warehouse||Kintetsu World Express||Logistics & Warehouse||Acquisition||IN-IN|
|136,591||Nippon Steel Corporation||Steel||Nippon Steel Trading Corporation||Wholesale & Retail||Acquisition||IN-IN|
|130,000||Sony Corporation of America||Electrical machinery||Epic Games||Software & IT(Gaming)||Investment Expansion||IN-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.