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Forget China; Japan Is 'Taking Over' The World Again (Near record acquisition of foreign companies)
Zero Hedge ^ | 10/15/2012 | Tyler Durden

Posted on 10/15/2012 9:23:30 AM PDT by SeekAndFind

The Japanese Yen has been one of the strongest currencies among the developed nations of the world since the end of LTRO (up 6%). This strength (repatriation flows and or carry unwind?) combined with a dismal domestic economic growth environment appears to have pushed Japanese firms to spend spend spend for growth.

The latest and greatest Softbank/Sprint deal will shift this year's Japanese corporate acquisition of foreign companies to near-record levels. As Bloomberg Briefs notes, this will be the country's largest overseas acquisition on record - exceeding Japan Tobacco's $19bn acquisition of the UK's Gallaher Group in 2007. However, this growth-buying-spree does not come cheap as ratings are under pressure and while LBO-style financing might make the deal 'cheap' at first, at some point the cycle will re-emerge; but for now - it appears the BoJ (who we are sure are watching intently) should maybe leave intervention off the table until Japan owns it all again and becomes even more too-bigger-to-fail.

 

 

Chart: Bloomberg Brief



TOPICS: Business/Economy; Society
KEYWORDS: acquisition; japan; japaneconomy

1 posted on 10/15/2012 9:23:35 AM PDT by SeekAndFind
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To: SeekAndFind

Quite likely Japan is buying hand grenades with the pins already pulled.


2 posted on 10/15/2012 9:44:03 AM PDT by Migraine (Diversity is great; until it happens to YOU.)
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To: SeekAndFind

So Japan is falling apart and Japanese business is doing fine?

http://www.freerepublic.com/focus/f-bloggers/2945073/posts


3 posted on 10/15/2012 9:46:45 AM PDT by Sequoyah101
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To: SeekAndFind

Better Japan than China...


4 posted on 10/15/2012 9:47:34 AM PDT by GraceG
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To: SeekAndFind

Two questions: Is Japan likely to keep behaving itself? Is China likely to start behaving itself?


5 posted on 10/15/2012 10:26:59 AM PDT by JimRed (Excise the cancer before it kills us; feed &water the Tree of Liberty! TERM LIMITS, NOW & FOREVER!)
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To: SeekAndFind

LOL! Meestah Durden, he so funny!


6 posted on 10/15/2012 10:57:27 AM PDT by familyop (We Baby Boomers are croaking in a thunderous avalanche of rottenness smelled around the earth.)
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