2007 was a mixed year for Japan, with the stock market suffering from foreign investors uncertainty following the subprime crisis and the long-hoped for recovery of the economy still not fully underway. Falling share prices in the banking sector especially interfered with several high-profile merger plans, and shareholders in bank stocks and owners of securitisations all waited nervously to see if their assets would be hit by fallout from the US subprime loans problem. Nonetheless, there were many reasons for market participants to be cheerful as overall volumes of announced M&A and DCM activity increased, and some pioneering Japanese firms consolidated domestically or sought to expand overseas. Euromoney’s inaugural Japan deals of the year highlights the year’s outstanding deals, chosen because they were well-executed, because they were especially bold or unusual in concept, and because they exemplify expected trends in capital markets in the near future.
M&A:
Best M&A deal (Japanese Target): Permira's acquisition of Arysta Lifescience
This was one of the hardest-fought categories, with several standout deals suggesting that more and more foreign firms are looking to make acquisitions in Japan as low stock prices here make valuations look attractive.