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Forget China; Japan Is 'Taking Over' The World Again (Near record acquisition of foreign companies)
Zero Hedge ^
| Tyler Durden
Posted on 10/15/2012 9:23:30 AM PDT by SeekAndFind
The Japanese Yen has been one of the strongest currencies among the developed nations of the world since the end of LTRO (up 6%). This strength (repatriation flows and or carry unwind?) combined with a dismal domestic economic growth environment appears to have pushed Japanese firms to spend spend spend for growth.
The latest and greatest Softbank/Sprint deal will shift this year's Japanese corporate acquisition of foreign companies to near-record levels. As Bloomberg Briefs notes, this will be the country's largest overseas acquisition on record - exceeding Japan Tobacco's $19bn acquisition of the UK's Gallaher Group in 2007. However, this growth-buying-spree does not come cheap as ratings are under pressure and while LBO-style financing might make the deal 'cheap' at first, at some point the cycle will re-emerge; but for now - it appears the BoJ (who we are sure are watching intently) should maybe leave intervention off the table until Japan owns it all again and becomes even more too-bigger-to-fail.
Chart: Bloomberg Brief
TOPICS: Business/Economy; Society
KEYWORDS: acquisition; japan; japaneconomy
Quite likely Japan is buying hand grenades with the pins already pulled.
posted on 10/15/2012 9:44:03 AM PDT
(Diversity is great; until it happens to YOU.)
Better Japan than China...
posted on 10/15/2012 9:47:34 AM PDT
Two questions: Is Japan likely to keep behaving itself? Is China likely to start behaving itself?
posted on 10/15/2012 10:26:59 AM PDT
(Excise the cancer before it kills us; feed &water the Tree of Liberty! TERM LIMITS, NOW & FOREVER!)
LOL! Meestah Durden, he so funny!
posted on 10/15/2012 10:57:27 AM PDT
(We Baby Boomers are croaking in a thunderous avalanche of rottenness smelled around the earth.)
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