Japanese companies are set to extend a spate of dealmaking abroad as a battle for survival in the face of a shrinking population, economy and domestic talent pool spurs foreign acquisitions.
SoftBank, Dentsu and Daikin Industries are among the wave of Japanese groups that are exploiting the current strength of the yen and weaker confidence among potential bidders in other countries to clinch multibillion-dollar mergers and acquisitions.
But such is the need to escape problems at home and avoid the steady decline of Japan that companies will continue to push overseas deals beyond this year’s record levels of $100bn even when the favourable market conditions begin to wane, according to bankers, lawyers and analysts.