Mergers and acquisitions by Japanese firms jumped 39 percent in the first 10 months this year, led by Mitsubishi UFJ Financial Group Inc.'s investment in Morgan Stanley, according to Recof Data Corp.
Total value of takeover or investment deals by Japanese companies reached ¥9.87 trillion through October, according to data provided by a unit of Recof Corp., a mergers and acquisitions adviser. Investment in overseas firms by Japanese companies more than tripled to ¥6.67 trillion, the report said.
Japanese firms, managing to avert the worst of the global credit crisis, are using their cash to take over overseas firms. Among the latest deals, Mitsubishi UFJ invested $9 billion to acquire 21 percent of Morgan Stanley, the U.S. securities firm seeking capital following the collapse of Lehman Brothers Holdings Inc.
"Japanese enterprises have gained much stronger financial strength and have ample amounts of cash, compared with their overseas counterparts that are hard hit by the credit crunch," Shoichi Niwa, director of Recof Data, said in a telephone interview.