20 Aug Why are the Japanese investing in Australia: AJBCC Special Report
The investment by Japanese companies into Australian companies continues at pace. One example is the recent and significant announcement of the proposed acquisition of Carlton and United Breweries by major beverage manufacturer Asahi.
This special report by the AJBCC, delved deeper in unearthing the reasons behind Japanese companies undertaking the plethora of M&A deals in Australia.
Based on data compiled by AJBCC member organisation Herbert Smith Freehills (HSF), which revealed that there were 57 acquisitions by Japanese companies in Australia over the last two years, the AJBCC undertook further analysis. This revealed the reasons driving such investments can be categorised into four identified categories.
These were to gain:
- New sales network
- Supply chain component
- New field of business
Not surprisingly, 85% of the companies identified ‘gaining a new sales network’ as a driver.
However, what was especially surprising was that 50% of the acquisitions were motivated by acquiring ‘know-how’.
The full AJBCC report can be found here.
In addition, AJBCC readers can find the original HSF report together with an excellent historical analysis of Japanese investment in Australia compiled by Austrade)