Cash Piles, Hostile Bids Set Stage for a Wild Japan M&A Year
Bloomberg 1/12/2021 Lisa Du
(Bloomberg) Japanese dealmaking was resurgent in the second half of 2020, with acquisitions dropping only slightly from 2019 to about $140 billion after the pandemic depressed deals in the first half of the year.
The momentum is likely to continue into 2021, M&A advisers say, with a pipeline of already agreed deals still to be announced. Pent-up demand, towering cash piles and external forces that could make 2021 among the most active years yet.
“Japanese companies are heading into 2021 with more cash and more firepower, having sold some non-core assets and consolidated their operations, and will turn again to outbound acquisitions” said Ken LeBrun, a partner at law firm Davis Polk Wardwell in Tokyo. “When that’s going to be first, second, or third quarter is not perfectly clear.”
Jan 12, 2021
Japanese dealmaking was resurgent in the second half of 2020, with acquisitions dropping only slightly from 2019 to about $140 billion (¥14.6 trillion) after the pandemic depressed deals in the first half of the year.
The momentum is likely to continue into 2021, M&A advisers say, with a pipeline of already agreed deals still to be announced. Pent-up demand, towering cash piles and external forces that could make 2021 among the most active years yet. Japanese companies are heading into 2021 with more cash and more firepower, having sold some non-core assets and consolidated their operations, and will turn again to outbound acquisitions” said Ken LeBrun, a partner at law firm Davis Polk Wardwell in Tokyo. When that’s going to be first, second, or third quarter is not perfectly clear.”
In a pandemic-hit year when dealmaking was more of a challenge than usual, certain lawyers stood out for their innovation, determination and focus on client needs. In this annual feature, ALB spotlights some of the standout dealmakers in the year gone by.
SHINICHI ARAKI
Partner, Nagashima Ohno & Tsunematsu
Araki, a capital markets expert, has more than two decades of experience. He represents numerous major Japanese financial institutions, manufacturers, technology companies and retailers. He also has a strong relationship with many major investment banks in Japan.
Araki has acted on numerous matters including, most recently, advising Nomura, Goldman Sachs and SMBC Nikko on the $3 billion global offering of common stock of ANA Holdings (holding company of the largest airline in Japan) in the midst of the COVID-19 outbreak. He also advised Goldman Sachs and other managers on $4.3 billion accelerated book-built offering (ABO) of Yahoo Japan’s stock by Altaba in 2018 as well a