Daiwa Security Eyes Asian Cross-Border M&A Growth
Potential M&A Activity | Feb 12, 2025 | EIN
DC Advisory, the wholly owned M&A arm of Japan's Daiwa Securities, is making a significant impact in Asian cross-border mergers and acquisitions through its specialized Asia Access team. Over the past year, this team executed 15 deals and has completed over 260 since its establishment in 2011. The firm focuses on middle-market transactions ranging from $100 million to $1 billion, aligning with the current buying and selling trends in Asia. The changing corporate landscape in Japan, driven by factors such as Warren Buffett's investments and the emergence of private equity, has stimulated a growth in M&A activity. Moreover, cultural and governance shifts in Japan have led to a surge in both inbound and outbound M&A transactions. DC Advisory has also been involved in high-profile transactions such as the sale of Fiery business to Japan's Seiko Epson and the sale of a minority stake in Network Steel Resources to Marubeni-Itochu Steel. In addition, Chinese private equity investment in Europe is growing, driven by strategic as well as financial motivations. DC Advisory’s Asia Access team plays a vital role in cross-border deals, leveraging their understanding of both Western and Asian markets.
Sectors
- Investment Banking
- Mergers and Acquisitions
- Private Equity
Geography
- Japan – DC Advisory operates as part of Daiwa Securities, a major Japanese investment bank involved in this evolving market.
- Asia – The primary region of focus for DC Advisory's cross-border M&A activities, particularly through its Asia Access team.
- Europe – A significant number of DC Advisory’s cross-border transactions involve European companies.
- China – Chinese investment trends and the role of Chinese private equity firms are significant themes in the article.
Industry
- Investment Banking – The article centers on DC Advisory's activities, an investment bank engaging in cross-border M&A transactions.
- Mergers and Acquisitions – The focus is on M&A activity in Asia with DC Advisory facilitating various deals.
- Private Equity – Private equity is a key focus area in the discussion of Chinese and Japanese investment strategies.
Financials
- 75mn – The amount Daiwa paid to acquire Close Brothers Corporate Finance in 2009.
- 591mn – Sale price of Electronics for Imaging's business unit to Seiko Epson.
- $100mn to $1bn – Typical size range of middle-market deals targeted by DC Advisory.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| DC Advisory | Financial Advisor | Company | A M&A advisory firm owned by Daiwa Securities specializing in cross-border transactions. |
| Daiwa Securities | Owner | Company | Japan's oldest and second-largest investment bank, owner of DC Advisory. |
| Tosh Kojima | Managing Director, Global Head of Asia Access | People | Leads the Asia Access team at DC Advisory, facilitating cross-border M&A deals. |
| Endong Zhai | China Lead | People | DC Advisory's China lead, experienced in European M&A practice. |
| Berkshire Hathaway | Investor | Company | Investment firm led by Warren Buffett, influential in stimulating foreign investment interest in Japan. |
| Hitachi | Target Company | Company | Example of corporate restructuring in Japan, with private equity acquisitions of its subsidiaries. |
| Electronics for Imaging | Target Company | Company | A firm advised by DC Advisory in its sale to Seiko Epson. |
| Siris Capital | Vendor | Company | The sole shareholder of Electronics for Imaging. |
| Seiko Epson | Buyer | Company | Japanese electronics company acquiring Electronics for Imaging's business unit. |
| Network Steel Resources | Target Company | Company | Sold a minority stake to Marubeni-Itochu Steel as advised by DC Advisory. |
| Marubeni-Itochu Steel | Buyer | Company | Acquired a minority stake in Network Steel Resources. |
| Torqx Capital Partners | Vendor | Company | Private equity firm that owned Diamond Tools Group. |
| Esteves | Buyer | Company | Acquired the automotive segment of Diamond Tools Group. |
| OSG | Buyer | Company | Acquired the optics operation of Diamond Tools Group. |
| Rossignol | Target Company | Company | Ski equipment brand advised by DC Advisory on its sale to a Chinese private equity firm. |
| Altor Equity Partners | Vendor | Company | Majority owner of Rossignol, advised to find a Chinese investor. |
| IDG Capital | Buyer | Company | Chinese private equity firm acquiring a stake in Rossignol. |