Monthly M&A Insider - Mergermarket

Expected deals
Pipeline of Japanse expected deals
Situation Target Company Sector Potential bidder
company
Expected
Deal
Expected
Deal
Expected
Deal
Expected
Deal
Expected
Deal
Takeover
Targets
Alico Japan;
AIG Edison Life
Insurance; and AIG
Star Life Insurance
Financial
Services
Nikko Cordial Financial
Services
Nippon Mining
Holdings Inc
Nipponkoa
Insurance Co Ltd
Morgan Stanley
Japan Ltd
Energy,
Mining &
Utilities
Financial
Services
Financial
Services
Prudential
Corporation Plc;
Tokio Marine
Holdings, Inc.;
and Nippon Life
Insurance Company
Mizuho Financial
Group; Mitsubishi
UFJ Financial
Group; and
Sumitomo Mitsui
Financial Group
Nippon Oil
Corporation
Sompo Japan
Insurance Inc
Mitsubishi UFJ
Financial Group Inc
Financial adviser
to bidder (B);
target (T); seller
(S)
Seller
company
American
International
Group Inc
Market cap/ est.
value ($m)
9,500
(estimated
value for the
three AIG
insurance units
in Japan)
Citigroup Inc 5,000 (est
value)
2,940 (market
cap)
4,850 (market
cap)
1,015 (capital
base)
Zict Inc Leisure Atom Corporation 360 (market
cap)
Comments
Japan
Following the bailout by the US
government, American International Group
has announced its plan to sell a number of
business units around the world, including
three subsidiaries in Japan.
Citigroup is expected to retreat from the
retail business in Japan, and has invited
bidders to table offers for the Japanese
brokerage group Nikko Cordial
Nippon Oil and Nippon Mining Holdings
have reached a basic agreement on
integration and signed an MOU. The
definitive agreement is scheduled to be
signed in October 2009.
Sompo Japan and Nipponkoa have
announced a basic agreement to establish
a joint holding company by April 2010.
Mitsubishi UFJ Financial Group and Morgan
Stanley have signed a memorandum of
understanding to form a joint venture
in Japan by combining their securities
businesses. MUFG will own a 60% stake
while Morgan Stanly will own a 40%
stake. The two companies aim to close the
transaction by the end of March 2010.
Zict Inc, the Japan listed restaurant
operator, is rumoured to be in merger talks
with Atom Corporation, a Japan listed
affiliate. Zict announced that a merger will
take place through a stock swap where one
Zict share will be exchanged for 0.6 shares
of Atom.
C = Completed; P = Pending; L = Lapsed Source: mergermarket
Monthly M&A report – 70