Global Acquirer Trends Report, Japan Special Edition

Japanese groups invest £4.2bn in the UK and Ireland between 2013 and 2017

The latest research conducted by Livingstone shows that merger and acquisition (M&A) activity by Japanese groups in 2017 grew by 42% over 2013 and 13% over 2016 across the globe, stimulated by Japanese interest in international expansion with the encouragement of the Japanese authorities.

The latest findings also reveal that Japanese groups acquired 215 middle market companies in Europe between 2013 and 2017, reaching an aggregate value of £13.5bn.

Jeremy Furniss, Partner at Livingstone, commented: “Japan has emerged as a major participant in global M&A flows over the last decade and has its sights firmly set on Europe, in particular the UK & Ireland.  Although our figures show that Japanese international investment is slightly lower than its peak in 2016 when transaction values reached £1.1bn, it is encouraging to see that the UK & Ireland remains an attractive option for Japanese M&A activity and reinforces the ongoing trend for the UK to be seen as a market of strategic importance. Despite concerns around Brexit, 2017 proved to be the second most active year for Japanese acquirers over the period under review.

“Activity in the Consumer, Industrial and Business Services sectors remained most prominent across the five years as Japan’s groups have looked to the UK & Ireland to enhance their global footprint. This high and sustained activity is due in no small part to the region’s strong technology base, skilled workforce and world-class service economy. However, the picture is less clear in the first half of 2018, with M&A activity slowing across Europe, albeit more noticeably in mainland Europe rather than the UK & Ireland.”

To request your copy of our latest research, please email Rosemarie Lamanno lamanno@livingstonepartners.co.uk