Oligopoly Watch
M&A firm acquires M&A firm
Japanese
company GCA, which specializes in advising other companies on mergers
and acquisitions, followed its own advice, we hope, in announcing its
acquisition of US company Savvian, also an M&A advisory firm. The deal is for $780 million.
Founded in 2004, GCA is #2 in its category in Japan, following financial services company Nomura. It has clients such as Nikko Cordial
(just sold to Citigroup) and Matsushita. Savvian specializes in
high-tech acquisitions, an area that is still hot in spite of the
recent slowdown in US M&A activity. Created in 2003, it has advised in 70 deals adding up to $12 billion.
The
announcement was part off a growing tendency for Japanese companies to
be involved in international acquisitions, something in which GCA may
be better equipped to advise them. Japanese M&A activity is growing, according to the Financial Times, up over 10 percent this year, reaching over $122 billion so far this year.
As a Wall Street Journal article ("Japan's GCA Joins Push to Look Abroad", 11/2/2007)
puts it:Many Japanese
companies have grown increasingly worried that growth in their home
market will slow as the country's population shrinks. To push profit
higher, many are looking for ways to expand into markets overseas where
growth promises to be faster. To do that, many Japanese companies have
decided they need to acquire a local firm,
