Reuters – Deal-making in Japan quickened to a pace not seen in six years in 2005, and bankers expect more multi-billion dollar mergers early in 2006 as firms seek to boost sales through acquisitions in a blossoming economic climate.
The size as well as the number of transactions is also expected to increase, with more deals priced around $10 billion and with private equity groups and hedge funds seen taking a larger slice of the action.
Under pressure to strike a deal, Japanese managers are gradually dropping their traditional preference for consensual mergers and mulling turning hostile.
“Some Japanese companies want to buy another Japanese firm even if it is hostile, so they can grow. We have several ongoing conversations with Japanese companies to buy another Japanese firm, but they are still hesitant,” said Tadashi Sato, M&A adviser at Nikko Citigroup.
