Japanese corporations' merger and acquisition (M&A) scale in the first half of this year has reached an all-time high.
Nihon Keizai Shimbun reported on the 10th, citing market information firm LSEG, that Japanese corporations' M&A amount in the first half reached $214.8 billion (about 295 trillion won).
This is the largest scale recorded since 1980, based on half-year figures, and is 3.6 times that of the same period last year.
The share of Japanese corporations in the global M&A market has also surpassed 10%. This is the first time since the second half of 1990.
Back then, Panasonic Holdings, known as Matsushita Electric Industrial Co. at the time, announced its acquisition of U.S. film company MCA, and overseas M&A activities were active among various corporations.
The recent increase in acquisition activities by Japanese corporations is attributed to the restructuring of large corporate groups and the sale of non-core businesses.
An example of corporate group restructuring is Toyota Motor Corporation's ongoing efforts to acquire its parent company, Toyota Industries. NTT is also considering plans to make its listed subsidiary NTT Data Group a wholly-owned subsidiary.
The number of subsidiary sales within the group was about 270 in the first half, a 30% increase compared to the previous year. Japan Tobacco Inc. (JT) decided to transfer its pharmaceutical business to Shionogi & Co., Ltd. to focus on its tobacco operations.
A source in the Japanese securities industry noted, 'The number of listed companies in North America and Europe has decreased by about 40% compared to the peak,' and 'cases of delisting after acquisitions for enhancing corporate value will increase in Japan as well.'