China Targeted M&A More than Seven Times Larger than Japan M&A

Keith Drakos

• China targeted M&A totals $373bn (2,337 deals) in 2015 YTD, seven times Japan targeted M&A volume of $51.8bn (1,747 deals) in 2015 YTD. This is in contrast to 20 years ago when in 1996 YTD Japan M&A totaled $7.8bn, more than 15 times China M&A of $495m and in contrast to 10 years ago when in 2006 YTD Japan M&A totaled $120bn, 89% higher than China’s $63.8bn
  • The last year that Japan targeted M&A was higher than China’s occurred in 2007 YTD; Japan totaled $119bn (2,891 deals) and China totaled $89.2bn (2,153 deals)
• The largest China targeted M&A deal this year is the completed $10.4bn acquisition of a 20% stake in CITIC Ltd by Japan’s Itochu Corp and Thailand’s Charoen Pokphand Group, completed on August 3. The deal is also the largest cross-border acquisition in Chinaon record
  • The largest Japan targeted M&A deal announced this year is the repurchase by Suzuki Motor Corp from Porsche Automobil Holding of a 21% stake in itself, in a deal worth $3.8bn and completed on September 17
• Japan outbound M&A totals $76.1bn (444 deals) this YTD, higher than China’s $62.3bn (375 deals), the first YTD period since 2012 that Japan outbound M&A volume exceeds that of China
  • The largest Japan outbound deal on record is Softbank’s $36.1bn acquisition of a 78% stake in US Telecom group Sprint Nextel. The largest China outbound deal on record was CNOOC’s $18.2bn acquisition of Canada Oil & Gas producer Nexen, with both deals completing in 2013
• Nomura leads the Japan M&A adviser ranking in 2015 YTD with deals worth $36.0bn, followed by Morgan Stanley with $35.6bn and Mizuho with $29.0bn. JPMorgan leads the China M&A adviser ranking with $42.3bn followed by CITIC Securities with $32.0bn and Morgan Stanley with $29.7bn

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