Rothschild Starts Examining 60 Acquisitions in Japan

 The Rothschild Group is reviewing about 60 possible cross-border mergers and acquisitions in Japan, said Keiichi Mitake, head of the firm’s new local advisory partner Global Advisory Japan.

London- and Paris-based Rothschild, which ended an alliance with Nomura Holdings Inc. last year, is seeking advisory mandates for merger and acquisition deals between Japanese and European or Asian companies in the financial, energy, technology, consumer and pharmaceutical industries.

“Rothschild has brought us a number of deals,” Mitake, 59, said in an interview yesterday, declining to identify any companies. “Some are just being sounded out, and some are in our pipeline.”

Rothschild is betting Japanese firms will increasingly invest overseas to expand their business as the nation’s population declines. The companies are under pressure to show shareholders a “blueprint” for expansion, and European companies are showing interest in selling assets or minority stakes to Japanese firms, Mitake said.

“Rothschild is known as family of pedigree, which will be an incentive for Japan’s corporate executives to work with them as credibility matters in the market,” said Makoto Haga, president of Tokyo-based hedge fund Wing Asset Management Co. “Cross-border takeovers by Japanese firms will increase as they need to strengthen revenue vehicles and stretch overseas.”

European M&A

Rothschild is the 10th-ranked financial adviser for European mergers and acquisitions so far this year, data compiled by Bloomberg show. Overseas buyouts by Japanese firms amount to $20 billion so far this year, compared with a record $77 billion a year earlier.

Global Advisory Japan was founded April 1 by a team of former Dresdner Kleinwort bankers, including Mitake, who was Dresdner’s local head of investment banking.

Mitake helped Dresdner advise Gallaher Group Ltd. on Japan Tobacco Inc.’s acquisition of the U.K. cigarette maker in 2007. He also advised Wal-Mart Stores Inc. on its acquisition of Seiyu Ltd. in 2005 and Resona Holdings Inc. on its sale of shares in JCB Co., a Japanese credit card company, in 2006.

Rothschild and Nomura, Japan’s largest brokerage, formed an alliance in 2005 to win more business advising on takeovers. They ended the partnership after Nomura acquired the Asian and European businesses of failed Lehman Brothers Holdings Inc. in October.


Source from Bloomberg