Strong Yen Prompts Consumer Players To Embark On An Acquisition Spree

Japanese consumer-facing companies are embarking on an acquisition spree as the yen climbs to a post-World War II high of JPY77.9/US$ at the time of writing. Japanese retailer AEON is ramping up its expansion pace in overseas markets as it seeks to exploit the strength of the yen. Spurred by the strengthening yen, domestic brewers Asahi and Kirin are also developing a greater appetite for overseas deals. Given our neutral stance on the yen despite the Bank of Japan's recent intervention to sell the yen, more local companies are likely to take advantage of their stronger purchasing power and hop on the overseas mergers and acquisitions (M&A) bandwagon in the near term.

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