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Chinese buyouts of Japan firms rising

More and more Japanese firms are being acquired by Chinese enterprises, with the number of such acquisitions hitting an all-time high of 36 between January and November 2010, Tokyo-based merger and acquisition consulting service provider Recof Corp said.

Mainichi Daily News reports that Chinese companies initially focused on Japanese manufacturers with advanced production technologies, but now they are also targeting Japanese restaurant chain operators and logistics firms.

Last summer CITIC Capital Partners acquired Tri Wall KK, a Toyo-based cardboard box manufacturer, by buying over half of the company’s outstanding stock. CITIC Capital Partners has now successfully turned around the Japanese manufacturer, taking advantage of soaring logistics demand in China and other Asian nations.

Yuji Suzuki, president of Tri Wall, expressed his expectations for the burgeoning Chinese market by saying: "In Japan, even if they are listed, small and mid-sized ventures can only get limited finances. In the rapidly growing Chinese market, on the other hand, we can expect abundant investments."

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