After hoarding $2.4 trillion in cash, corporate Japan is pursuing overseas takeovers like never before to boost returns. Sony Corp. and Fujifilm Holdings Corp. are among the companies with the biggest incentive to chase deals.
More than $25 billion of cross-border acquisitions have been struck by Japanese companies this year, on pace to exceed the record amount of deals announced in 2006, according to data compiled by Bloomberg. The buying spree comes as Japan’s currency climbed to its highest level since World War II versus the dollar and the world’s third-largest economy fell into its third recession in a decade after being rocked by the nation’s biggest earthquake on record.
Japanese companies are using their buying power on foreign takeovers after slumping demand at home destroyed almost half their equity value in the past five years.
Read the rest of the story: Sony Leads Japan Inc. Eyeing Deals With $2.4 Trillion: Real M&A.