Japan’s Nihon M&A Center launches Vietnam unit for growing cross-border deals

09, Mar. 2020

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HO CHI MINH CITY, NNA - Japanese deal matchmaker Nihon M&A Center Inc. has launched its subsidiary in Vietnam, its third overseas foothold, to meet the growing demand for cross-border mergers and acquisitions by Japanese companies in Asia.

Nihon M&A Center Vietnam Co. was established with a capital of 6.37 billion dong ($274,800) in Ho Chi Minh City on February 27.

The new unit aims to handle about five deals per year in the non-manufacturing sector over the next three years, Hiromitsu Watanabe, director of the subsidiary, told NNA on Monday.

He expects the value of the deal to be about 1 billion yen ($9.7 million). “We’re looking at Japanese logistic and wholesale businesses which aim to buy market share,” he added.

Nihon M&A center, which focuses on small- and mid-sized businesses, has handled more than 5,000 deals – including about 30 cross-border transactions, mainly in Southeast Asian countries such as Singapore, Indonesia, and Vietnam – since its start in 1991, a spokesman at Nihon M&A Center told NNA. The remaining were domestic deals.

The Japanese company has already opened offices in Singapore in April 2016 and Indonesia in October 2019 after establishing a division to support cross-border deals at the Tokyo headquarters in April 2013.

For the three quarters through December 31 of 2019, the company handled a total of 743 deals, up 22.8 percent from 605 in the same period of the previous year, according to its earnings report released January 30.

It expects a 7.7 percent increase in pre-tax profit to 13.5 billion yen in the fiscal year ending on March 31 on revenue of 32.4 billion yen, a 13.8 percent jump.