The number of foreign investors acquiring Japanese businesses with ownership of at least one-third of their shares rose 13.1 percentage points in fiscal 2003 to 26.0 percent, underlining increasing foreign mergers and acquisitions here, according to a survey released Wednesday.
Of 127 foreign businesses that entered Japan in the business year through March 2004, 69.2 percent were newly established firms, while 26.0 percent were Japanese companies partly or fully acquired by foreign investors through mergers and capital increases, the annual survey by the Ministry of Economy, Trade and Industry showed.
Against the increase in the ratio of foreign acquisition, the percentage of new business establishment by foreign capital including joint ventures fell 10.6 points from fiscal 2002.
The number of foreign firms establishing business footholds or acquiring shares in Japanese companies declined by 30 to 127, the first decrease in five years. Sectors including information and telecommunication, transport and services fell.
Of the 127, 47 were from the United States, 33 from Asia and 32 from Europe.
METI received valid responses from 2,040 companies at least one-third owned by foreign investors or businesses under holding companies at least one-third owned by them as of last Nov. 1.