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Japan's second wave of global M&As begins

Japan’s second wave of global M&As begins

(16 February 2012 – Asia) Japanese banks are profiting from the strong yen especially on mergers and acquisitions in Europe. Sumitomo Mitsui Financial Group, Japan’s second-largest bank by market capitalization, intends to increase its overseas assets by US$78 billion (A$77 billion) over the next two years to counterbalance weak domestic loan demand.

The bank’s overseas assets amounted to US$127 billion in 2011.

In the space of slightly over a month, SMFG has bought RBS Aviation Capital based in Dublin, Ireland and has taken part ownership of Moelis and Company, a five-year old US financial adviser whose value lies in its information about M&As.

RBS Aviation Capital, a subsidiary of the Royal Bank of Scotland, is the seventh-largest aircraft lessor in the world by fleet size and operates 246 jets.

The firm is being acquired by SMFG for US$7.3 billion. RBS expects the sale will be completed before the end of Q3.

SMFG’s renewed globalization, and those of the other top Japanese banks, is widely seen as the "Second Wave" of Japanese M&As after the First Wave that resulted in a large number of significant acquisitions in the 1980s.
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