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Japan: Although it did not go through, the attempted hostile takeover of Hokuetsu Paper by Oji Paper, Japan's biggest paper company, may be a sign of mergers and takeovers to come in Japan.

Japan: Although it did not go through, the attempted hostile takeover of Hokuetsu Paper by Oji Paper, Japan's biggest paper company, may be a sign of mergers and takeovers to come in Japan. In the first seven months of 2006, the combined value of mergers and acquisitions has reached [yen] 8 trillion ($67.9 billion). Since the burst of the bubble in 1990, Japanese companies have been consolidating and cutting back, but as the Japanese economy has returned to strength, companies are beginning to spend again. In many commodities industries, buying another company often makes more sense than investing in new equipment. International rivals expanded during Japan's lean years, and a new law that comes into effect in May 2007 will allow foreign companies to purchase Japanese companies using stock swaps. Some Japanese companies are acquiring foreign firms, and others are engaging in international joint ventures in order to protect themselves.

Source: The Economist
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Title Annotation:Region Watch
Publication:Instrument Business Outlook
Date:Sep 30, 2006
Words:154
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