Plaisance Advisors’ Comment: As we mentioned in a previous posting, Japanese companies are well positioned and motivated to make acquisitions around the world, especially in the US. Toyota Industries’ (the car maker Toyota Motors was spun off from Toyota Industries 80 years ago) announced acquisition of Cascade appears to be an example of this trend that we predict will continue to accelerate.
On our Commentary page we highlight items we believe are relevant to the mergers and acquisition environment and provide commentary on those items.
Plaisance Advisors’ Comment: Very low interest rates in Japan, combined with a willingness of Japanese banks to lend and low growth domestically are driving Japanese companies to look abroad for attractive investment opportunities. This transaction highlights what we believe may be a growing trend in cross-border transactions.