Dentsu acquires Gleam Futures via Dentsu Aegis Network as a cultural bridge

Dentsu 電通

Dentsu uses London based Dentsu Aegis Network as a cultural bridge to acquire representation of about 40 YouTube stars

Dentsu acquires Gleam Futures: invests to acquire 90% ownership

Dentsu acquires Gleam Futures, who “develop, monetize & protect” digital-first talent, ie mainly YouTube focused stars.

Japanese companies have a dramatically different culture than Western, European or US companies, and Dentsu is one of Japan’s more traditional companies, at the same time home to Japanese creative talent.

To bridge this gap in cultures, Dentsu acquired the French/UK company Aegis Group plc on 5 July 2012, creating Dentsu Aegis Network. Dentsu has used Dentsu Aegis Network as a bridge head for many acquisitions in Europe and the Mediterranean are, bridging cultural differences.

Gleam Futures: “We manage digital-first talent”

Gleam Futures describe their business as “we develop, monetize & protect” digital-first talent, e.g. YouTube stars.

http://www.gleamfutures.com

  • Established: 2010
  • Employees: 37
  • Talents: 40
  • Combined subscriber base: approx. 60 million
  • Revenues: UK Pounds 4.35 million (Fiscal Year ending Dec 2016
  • Founder & CEO: Dominic Smales

Zoella

11,838,878 subscribers as of 22 June 2017

Caspar Lee

7,197,168 subscribers as of 22 June 2017

Marcus Butler

4,611,346 subscribers as of 22 June 2017

Total: approx. 60 million subscribers

Copyright (c) 2017 Eurotechnology Japan KK All Rights Reserved

Roche acquires Chugai Pharmaceutical controlling stake, expanding in Japan, the world’s second largest pharmaceutical market

Japan’s pharmaceutical market is approx. US$ 80 billion – US$ 120 billion, approx. 10% of the global pharmaceutical market

Roche acquires Chugai: Roche KK merges into Chugai in a carefully structured process, with Chugai the surviving company

Roche acquires Chugai in a series of carefully crafted transactions, to expand in the world’s second largest pharmaceutical market, Japan. Japan’s pharmaceutical market size is estimated at YEN 8000 – 1,200 billion (US$ 80 billion – US$ 120 billion), depending on the source and methods of estimation, corresponding to about 10% of the global pharmaceutical markets.

Growth of Japan’s pharmaceutical markets are about 2% per year, thus expected to grow to about US$ 130 billion by 2018. Different studies give different estimates for the size of Japan’s pharmaceutical market.

Roche acquires Chugai. First stage. December 2001/October 2002. Roche acquires 50.1% of Chugai and merges Nippon Roche KK into Chugai

In 2001, Roche and Chugai agreed for Roche to acquire 50.1% of Chugai for YEN 155 – 198 billion (US$ 1.23 – 1.58 billion). Basic agreement was signed in December 2001.

The merger of Nippon Roche into Chugai, which Chugai the surviving company and the full start of the alliance was in October 2002. Chugai maintains autonomous management, and listing on the Tokyo Stock Exchange.

Roche and Chugai entered into a double licensing agreement, where Roche licenses products from Chugai for international distribution, and vv Chugai licenses products from Roche for distribution in Japan:

  • Chugai has first refusal rights to develop and sell Roche products in Japan
  • Roche has first refusal rights to develop and sell Chugai products in Japan, with some territorial exceptions

Also agreed were limits on Roche’s shareholding in Chugai:

  • 1 Oct 2002 – 30 Sept 2007: maximum shareholding 50.1%
  • 1 Oct 2007 – 30 Sept 2012: maximum shareholding 59.9%
  • from 1 Oct 2012: Roche will cooperate to maintain Chugai’s stock market listing in Japan

Roche acquires Chugai. Second stage. 2008 Roche increases share holding in Chugai to 59.9%

Roche acquires Chugai. Third stage: Roche currently holds 61.62% of Chugai

Although there have been press reports speculating that Roche plans to acquire all of Chugai, currently Roche holds 61.62% of Chugai.

Chugai Pharmaceutical Company Ltd (中外製薬株式会社)

Chugai Pharmaceutical Company Ltd is (中外製薬株式会社) listed on the Tokyo Stock Exchange, Code 4519.

Market cap is YEN 2,360 billion (approx. US$ 24 billion) as of 26 May 2017. Chugai employs 7245 people as of 31 December 2016, achieving sales/revenues of YEN 492 billion (approx. US$ 5 billion).

Chugai was founded on 10 March 1925, and established in the current form on 8 March 1943.

Roche in Japan

  • 1899: Roche is the first Western pharmaceutical company to start business in Japan, establishes a network of sales representatives
  • 1904: Karl Rhode Company becomes distributor of Roche in Japan
  • 7 July 1924: Roche incorporates a subsidiary in Japan, Roche Gomeikaisha
  • 1924-1939: Dr Alice Keller, Head of Roche Japan
  • 1932: Nippon Roche KK founded
  • 2001/2002: Roche acquires 50.1% of Chugai, merges Nippon Roche KK into Chugai. Chugai is the surviving company, and remains under autonomous management and listed on the Tokyo Stock Exchange

Copyright (c) 2017 Eurotechnology Japan KK All Rights Reserved

ISOLITE acquired by Hitachi Chemical from private equity fund HQ Equita and others

Private equity fund HQ Equita had acquired ISOLITE in 2010, now sells to Hitachi Chemical

ISOLITE acquired by Hitachi Chemical to build global speciality insulation materials group

ISOLITE acquired by Hitachi Chemical from private equity fund HQ Equita, as announced on 27 and 28 April 2017.

Isolite – High Temperature Solutions

Isolite produces and sells a range of insulation materials and solutions specifically for the high temperature sector up to 1600C for the automotive, aircraft and other industrial sectors.

  • Isolite GmbH
  • CEO: Christian Eck
  • founded: 1997
  • employees: 410
  • patents: 12
  • manufacture and sales of thermal insulations for automobiles, aircraft, and other industrial applications
  • http://isolite.de/

HQ Equita

HQ Equita is a mid-cap buyout firm of HQ Capital, related to the German Harald Quandt Family Office.

Copyright (c) 2017 Eurotechnology Japan KK All Rights Reserved

Sanofi acquires SSP (エスエス製薬株式会社) from Boehringer Ingelheim in a global asset swap

Japan’s pharmaceutical market is approx. US$ 80 billion – US$ 120 billion, approx. 10% of the global pharmaceutical market

Sanofi acquires SSP (エスエス製薬株式会社), a Japanese OTC pharmaceutical company, founded as a pharmacy in Tokyo in 1765

Boehringer Ingelheim had acquired SSP (エスエス製薬株式会社), a Japanese OTC pharma company founded originally in 1765 as a pharmacy in Yaesu, Tokyo, starting with business cooperation, followed by staged investment over a period of five years, starting in 1995, followed by a Take-Over-Bid and delisting of SSP from the Tokyo Stock Exchange in 2010.

For details of Boehringer’s acquisition of SSP, see: http://eu-japan.com/2010/12/boehringer-ingelheim-ssp/

On 1 January 2017 as part of a global asset swap of Boehringer Ingelheim with Sanofi, SSP becomes a subsidiary of the French pharmaceutical group Sanofi (サノフィ株式会社)

SSP (エスエス製薬株式会社), founded in 1765

History, and acquisition steps by Boehringer Ingelheim:

  • SSP (エスエス製薬株式会社) was founded in 1765 as a pharmacy in Yaesu, Tokyo
  • On 29 October 1927 the company was incorporated as (株)瓢箪屋薬房
  • In 1940 the company name was changed to (エスエス製薬株式会社)
  • 1969 IPO on the 2nd section of the Tokyo Stock Exchange
  • 1971 IPO on the 1st section of the Tokyo Stock Exchange
  • 1995-1996 Boehringer Ingelheim invests in SSP, and becomes largest share holder
  • 2001 Boehringer Ingelheim increases shareholding to above 50%
  • 15 February 2010 Boehringer Ingelheim Japan Investment GK (ベーリンガーインゲルハイム・ジャパン・インベストメント合同会社) issues a Take-Over-Bid (TOB), which is concluded on 15 April 2010, resulting in Boehringer Ingelheim Investment Japan acquiring a total of 93% of SSP shares.
  • 16 July 2010 SSP is delisted from Tokyo Stock Exchange
  • 1 October 2010 merger with Boehringer Ingelheim Japan Investment GK (ベーリンガーインゲルハイム・ジャパン・インベストメント合同会社)
  • 19 November 2010 merger with BI Nippon Invest GK (BIニッポンインベスト合同会社)
  • 19 November 2010 becomes subsidiary of Boehringer Ingelheim Japan KK (ベーリンガーインゲルハイムジャパン株式会社)
  • 1 January 2017 as part of a global asset swap of Boehringer Ingelheim with Sanofi, SSP becomes a subsidiary of the French pharmaceutical group Sanofi (サノフィ株式会社)

Copyright (c) 2017 Eurotechnology Japan KK All Rights Reserved

Nippon Electric Glass acquires PPG’s European fibre glass operations

Nippon Electric Glass acquires PPG glass fibre manufacturing and R&D in Hoogezand (Netherlands) and Wigan (UK)

Reinforcement materials for transportation, energy, infrastructure and consumer markets

On June 20, 2016 PPG and Nippon Electric Glass (NEG, TYO:5214) announced that Nippon Electric Glass will acquire PPG’s European fibre glass operations, subject to employee consultations, regulatory and other approvals. The acquisitions were completed on October 3, 2016.

PPG’s European Fibre glass operations employ approximately 550 people, and achieved about EURO 150 million in sales in 2015.

Nippon Electric Glass aims to expand its glass fibre business:

  1. by acquiring production facilities in Europe
  2. increasing the chopped glass fibre strands business
  3. adding new glass fibre product lines

Total assets: approx. € 90 million
Total annual revenues: approx. € 150 million

PPG Industries Fiber Glass B.V., Westerbroek / Hoogezand

Energieweg 3, 9608 Westerbroek, Netherlands

Main products: chopped strands for reinforced plastics
Main markets: composite materials for auto parts

New name after acquisition: Electric Glass Fiber NL BV
Location: Hoogezand, Netherlands
Capital: € 16 million
Established: April 28, 1961
Ownership: 100% Nippon Electric Glass Co Ltd.

PPG Industries (UK) Ltd

132 Leigh Road, Hindley Green, Wigan, Lancashire WN2 4XG, United Kingdom, United Kingdom

Main products: direct rovings for reinforced plastics
Main markets: blades for wind power generation, composite materials for auto parts
approximately 220 employees (plus temporary staff)

New name after acquisition: Electric Glass Fiber UK Ltd.
Capital: UKL 30 million
Established: July 8, 2016
Ownership: 100% Nippon Electric Glass Co Ltd.

Seller: PPG (Pittsburgh Plate Glass)

Pittsburgh Plate Glass (PPG) was founded in 1883 in Pittsburgh, Pennsylvania, and today operates about 156 factories globally and in 2015 achieved revenues of around US$ 15.3 billion.

Acquirer: Nippon Electric Glass KK (NEG)

Nippon Electric Glass KK (NEG) was established in 1944 with an investment from NEC Corporation and others, and separated from NEC, and was incorporated as an independent company in 1949.

Today NEG has about US$ 2.4 billion in annual revenues and produces about 20% of the global production of glass for liquid crystal displays, and other speciality glass products.

Copyright (c) 2016 Eurotechnology Japan KK All Rights Reserved

SoftBank acquires ARM Holdings plc driven by paradigm shift to Internet of Things (IoT)

softbank eurotechnology.com

On 18 July 2016 SoftBank announced to acquire ARM Holdings plc for £17 per share, corresponding to £24.0 billion (US$ 31.4 billion)

SoftBank acquires ARM: acquisition completed on 5 September 2016, following 10 years of “unreciprocated love” for ARM

On 18 July 2016 SoftBank announced a “Strategic Agreement”, that SoftBank plans to acquire ARM Holdings plc for £24.0 billion (US$ 31.4 billion, ¥ 3.3 trillion) paid as follows:

  • Cash on Hand: £16.7 billion (US$ 12.5 billion, ¥ 2.3 trillion)
  • Loans: £7.3 billion (US$ 9.5 billion, ¥ 1.0 trillion)
  • Total: £24.0 billion (US$ 31.4 billion, ¥ 3.3 trillion)

(excluding 20.4 million shares (1.4%) that SoftBank already owned on 18 July 2016).

Acquisition schedule:

  • 18 July 2016: Strategic agreement between SoftBank and ARM announced by SoftBank
  • 5 September 2016: effective date of Scheme of acquisition
  • 6 September 2016: ARM delisted, cancellation of listing of ARM shares
  • 12 September 2016: cancellation of listing of ARM US Depositary shares (ADS)

Straight line from SoftBank’s acquisition of Vodafone-Japan to acquisition of ARM

In a detailed interview in Nikkei on 3 September 2016, Masayoshi son explained that he was interested in ARM ever since about 1906, when saw the paradigm shift from PC to mobile, when he discussed his designs for mobile internet handsets with Steve Jobs, and when he acquired Vodafone-Japan (see: Why did Vodafone fail in Japan? … and miss an opportunity of US$ 83 billion).

SoftBank’s acquisition of Vodafone Japan is explained here: Softbank acquires Vodafone Japan with co-investment from Yahoo KK

SoftBank’s acquisition of Vodafone Japan – in combination with having developed YAHOO-Japan into the leading internet service company in Japan – enabled SoftBank to become a key global player in mobile communications.

Masayoshi Son: unreciprocated love for ARM for 10 years

In the Nikkei interview of 3 September 2016, Masayoshi Son explains that he had an “one-sided / unreciprocated love for ARM” for at least 10 years, but decided to acquire SPRINT first. After acquiring SPRINT he had to pay down debt before being able to acquire ARM now.

ARM Holdings plc

ARM was founded on 27 November 1990 as Advanced RISC Machines, however the abbreviation ARM was first used in 1983 and initially meant “Acorn RISC Machines”.

Acorn Computers Ltd was founded in 1978 in Cambridge (UK) by Hermann Hauser and Chris Curry to produce computers, and its most famous product was the BBC Micro Computer.

ARM has built an ecosystem of IC design systems and platforms which are at the core of low energy consumption ICs and CPUs for smartphones and many other electronic devices and cars. ARM may become or already is one of the core technology companies for the Internet of Things (IoT).

SoftBank’s ARM Business Department’s name changed to “New Business Department”

On 3 September 2016 SoftBank announced that the name of SoftBank’s ARM Business Department has been changed to SoftBank New Business Department.

Preview – SoftBank today and 300 year vision report:

Register and receive an email with a link to a free trial version of our report on “SoftBank today and 300 year vision” and our newsletters.

Copyright (c) 2016 Eurotechnology Japan KK All Rights Reserved

Toray acquires Delta-Tech SpA to expand carbon fiber business in Europe

Toray acquires Delta-Tech: 55% of Italian fiber manufacturer Delta-Tech SpA including Delta-Preg SpA

Toray management program Project AP-G 2016: “thorough implementation of growth strategy through innovation and aggressive management”

Toray acquires Delta-Tech: acquires 55% of outstanding shares of the Italian prepreg manufacturer Delta-Tech SpA including the fully owned subsidiary Delta-Preg SpA.

Delta-Tech SpA and Delta-Preg SpA

Delta-Tech SpA was founded in 1999 for products in the composite materials industry.

Delta-Tech product groups include:

  • fabrics: woven carbon, multi axial stitched carbon, woven glass…
  • UD tapes: HS carbon fiber, IM carbon fiber etc
  • Kordo: pre-formed edging system
  • SIMS: Semi-impregnated micro-sandwich, laminates based on the use of non-woven needle punched fabrics with micro-sandwich structures. Applications are automotive body panels and personal protection equipment

Delta-Preg SpA was founded in 2001 and manufactures textiles.

Pre-preg

Pre-Preg are pre-impregnated composite fibers with a matrix material such as epoxy.

Toray’s medium term management program “Project AP-G 2016” (from April 2014 to March 2017)

Toray’s Project AP-G 2016 is part of Toray’s long term vision “AP-Growth TORAY 2020“, and follows “Project AP-G 2013.

Thorough implementation of growth strategy through “innovation and aggressive management”.

Key benchmarks for FY 2016:

  • Consolidated net sales: YEN 2.3 trillion (US$ 23 billion)
  • Consolidated operating income: YEN 180 billion (US$ 1.8 billion)
  • ROA 8%
  • ROE 10%

Toray’s long term vision “AP-Growth TORAY 2020“: become “a global top company of advanced materials”

AP-Growth TORAY 2020 is a unified growth map for the next 10 years based on Toray’s corporate vision of “contributing to society through the creation of new value with innovative ideas, technologies and products”.

Key KPI’s for AP-Growth TORAY 2020 (to be achieved around 2020)

  • consolidated net sales: YEN 3 trillion (US$ 30 billion)
  • Consolidated operating income: YEN 300 billion (US$ 3 billion)
  • Operating income margin: 10%
  • ROA: 10%
  • ROE: 13%

Toray Industries, Inc. (東レ株式会社) “Innovation by chemistry” (化学による革新と創造) (TSE 3402, LSE TKK)

Toray Industries, Inc. (東レ株式会社) was founded on 12 January 1926 with an investment by Mitsui Bussan. The company was incorporated as Touyou Rayon (東洋レーヨン) on 16 April 1926.

In 1970 the company name was changed to Toray KK (東レ株式会社). Toray is the abbreviation of Touyou Rayon (レーヨン).

Toray’s main business are:

  • fibers and textiles
  • plastics and chemicals
  • IT related products: films, color filters, products for IC production, graphics materials
  • carbon fiber composites
  • environment and engineering: water treatment membranes, materials for housing, environmental equipment
  • life science
  • other: analysis, research related services

Toray builds integrated supply chain in Europe

Through a program of acquisitions, Toray is building an integrated supply chain in Europe:

  • Delta-Tech SpA and Delta-Prepreg SpA
  • Saati SpA’s European carbon fiber fabric and prepreg business, renamed: Composite Materials (Italy) S.r.l., (CIT)
  • Alcantara S.p.A.: Trading activities, manufacture and marketing of ALCANTARA®, unique covering material
  • Toray Carbon Fibers Europe S.A. (CFE): polyacrylonitrile (PAN) precursor
  • Toray Films Europe S.A.S. (TFE)
  • Toray Textiles Central Europe s.r.o. (TTCE)
  • Euro Advanced Carbon Fiber Composites GmbH (EACC): Manufacture and marketing of CFRP parts and components for automobile
  • ACE Advanced Composite Engineering GmbH (ACE)
  • Toray International Europe GmbH (TIEU)
  • Toray Resins Europe GmbH (TREU): Import and sales of resin products
  • Greenery GmbH: Development, manufacturing, and sales of fuel cells and water electrolysis components
  • Toray Membrane Spain S.L. (TMSP): Marketing and consulting of water treatment membranes
  • Toray Membrane Europe AG (TMEu): Importing and Sales of RO membrane element, UF/MF hollow fiber membrane module, and submerged module of flat sheet membrane
  • Toray International U.K. Ltd. (TIUK): trading
  • Toray Textiles Europe Ltd. (TTEL): Weaving and dyeing of polyester filament textiles

Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

Suzuki Volkswagen “Wagen-san” divorce: a teachable moment

Volkswagen VW Suzuki eurotechnology.com

“Mr. Suzuki didn’t want to be a VW employee, and that’s understandable” (Prof. Dudenhoeffer via Bloomberg)

Suzuki Volkswagen divorce: Volkswagen makes approx US$ 1.3 billion profit, Suzuki comes out more or less even

by Gerhard Fasol, All Rights Reserved. 18 September 2015, updated: 27 September 2015

A smiling Martin Winterkorn and Osamu Suzuki (79 years old at that time) looking the other way celebrated their freshly agreed “comprehensive partnership” at a press conference in Tokyo on December 9, 2009. Friends of mine who attended this press conference told me later that the lack of communication between Martin Winterkorn and Osamu Suzuki was quite visible to the audience, and that they already then had doubts about the future of this partnership.

Its interesting to look at the faces of Mr Winterkorn and Mr Suzuki in Reuters’ photograph of the occasion – a beaming Mr Winterkorn, and Mr Suzuki looking away from Mr Winterkorn – avoiding Mr Winterkorn’s eyes.

Wall Street Journal reported, that Suzuki and Volkswagen would negotiate details of their “comprehensive partnership” sometime later weeks or months after the announcement. We now know that these negotiations did not lead anywhere, and were never concluded.

Reuters reports that at the press conference VW CEO Martin Winterkorn focused on his plan to overtake Toyota as the global No. 1 carmaker in 2018 or earlier, Suzuki being obviously meant as a step to achieve this target to overtake Toyota and become No. 1 globally. According to Reuters, Volkswagen sold 3.265 million cars in the first half of 2009, and Suzuki sold 1.15 million – if combined, if Suzuki would become Volkswagen’s subsidiary, this would be 4.42 million compared to Toyota’s 3.564 million.

Suzuki Motor Corp. CEO Osamu Suzuki is reported by Reuters to have emphasized that he wanted to clear up any misunderstanding: he definitely did not want Suzuki to become a 12th brand for Volkswagen, and he does not want other people to tell him what to do – in reply to the question if he could see a German CEO for Suzuki Motor Corporation.

Suzuki Volkswagen alliance

Suzuki Volkswagen alliance time line

  • 9 Dec 2009: VW-CEO Martin Winterkorn and Suzuki-CEO Osamu Suzuki announced the “comprehensive partnership” at a press conference in Tokyo
  • 9 Dec 2009: Suzuki transferred 107,950,000 treasury shares to Volkswagen AG, valued approx at 226,695,000,000 yen (= approx. US$ 2.3 billion)
  • Suzuki acquired a 2.5% voting stake in Volkswagen for US$ 1.13 billion
  • 15 Jan 2010: VW purchased 19.89% of Suzuki shares for about € 1.7 billion
  • 1 July 2011: Osamu Suzuki publicly denounces “Wagen-san’s” intentions in his Japanese language blog in Japan’s Nikkei “スズキとワーゲンの今とこれから (鈴木修氏の経営者ブログ)” (“Suzuki and Wagen now and the way forward”) (may need Nikkei subscription)
  • Sept 2011: Suzuki’s Board decides to terminate the partnership
  • 18 Nov 2011: Suzuki gives notice to Volkswagen of termination of partnership, Volkswagen does not reply
  • 24 Nov 2011: Suzuki files for arbitration at International Court of Arbitration of the International Chamber of Commerce (ICC) in London
  • 30 Aug 2015: ICC Arbitration Court issues judgement and holds the termination of the partnership valid, orders VW to sell all Suzuki shares back to Suzuki, and orders Suzuki to pay damages for breaking the agreement
  • 17 Sep 2015 8:45am: Suzuki purchases back 119,787,000 of its own shares previously owned by VW back via Tokyo Stock Exchange ToSTNeT-3 system for 460,281,547,500 yen (approx. US$ 3.9 billion)
  • 26 Sep 2015: Suzuki announced the transaction to sell all 4,397,000 Volkswagen shares which Suzuki owns to Porsche Automobile Holding SE, completing the termination of the partnership and capital alliance with VW

No common language, colliding expectations and no “meeting of minds”

Much has been reported in the press about what went wrong with the Suzuki-Volkswagen alliance, and both parties obviously have a very different understanding of the development, and both sides will feel obliged to maintain confidentiality. The ICC arbitration is also confidential. Therefore it will be hard to establish the precise facts.

However, it is obvious, that from the start there was no “meeting of minds”.

Expectations were very different and on collision, and obviously were never discussed openly between VW and Suzuki at CEO level. Even if they had wanted to, without any common language any direct communication was impossible anyway between CEOs.

Suzuki apparently hoped to receive technology from Volkswagen, Suzuki is reported to have hoped for personnel support, workers from Volkswagen (?) – it is not clear to this author what Suzuki was planning to give in return. Suzuki apparently gave up on the hope to obtain Diesel engines from Volkswagen and in the end did so from Fiat, which Volkswagen claimed to be an infringement of the cooperation agreement, a view which seems to have been maintained by the ICC arbitrators.

It is obvious, that Volkswagen was aiming to acquire increasing stakes of Suzuki, and was aiming to make Suzuki a subsidiary under Volkswagen control. Volkswagen was particularly interested in Suzuki’s market position in India via Maruti Suzuki India Limited, and by Suzuki’s know-how in designing and producing cost-efficient small sized vehicles. Again its unclear what Volkswagen planned to give in return.

Reportedly, Volkswagen demanded to increase the holding of Suzuki shares to 33% to “facilitate technology transfer”.

In September 2011, Suzuki Motors’ Board of Directors decided to terminate the cooperation with VW, making Suzuki Volkswagen divorce unavoidable.

On 18 Nov 2011 Suzuki gave notice to Volkswagen of termination of the partnership, and asked for return of the Suzuki shares. Volkswagen held on to the Suzuki shares for the time being.

Osamu Suzuki denounces “Wagen-san” intentions publicly in his Japanese blog in Nikkei – the world’s largest business daily.

On 1 July 2011, Suzuki-CEO Osamu Suzuki chose to inform the world in great detail about his opinion and decisions about the relationship between Suzuki and “Wagen” (ワーゲン). This article is entitled “スズキとワーゲンの今とこれから (鈴木修氏の経営者ブログ)” (english translation: “Suzuki and Wagen now and the way forward” (Osamu Suzuki’s management blog)). Osamu Suzuki’s blog can be read here (may need Nikkei subscription).

Clearly, calling Volkswagen “Wagen” and “Wagen-san” already expresses Osamu Suzuki’s frustrations very clearly. We are not sure, but most likely Volkswagen CEO and top management probably read this blog a few days later once it was translated by VW’s Japanese staff.

With this blog article it was unmistakably clear to the world that the Suzuki-“Wagen” cooperation had been broken down without any possibility for repair, and makes the Suzuki Volkswagen divorce public.

Professor Ferdinand Dudenhoeffer, Director of the Center for Automotive Research at the University Duisburg-Essen according to Bloomberg, summarized: “Mr Suzuki didn’t want to be a Volkswagen employee, and that’s understandable”.

VW’s reply: “The tail is not going to wag the dog” (VW-CEO Winterkorn cited in Der Spiegel on 19 Sept 2011)

Germany’s leading intellectual and business weekly Der Spiegel on 19 Sept 2011 quotes VW-CEO Martin Winterkorn about the VW-Suzuki relationship: “Da wackelt der Schwanz nicht mit dem Hund” (the tail is not going to wag the dog).

In the same article Der Spiegel of 19 Sept 2011 states that if Suzuki terminates the cooperation agreement with Suzuki, then VW would be free to increase its ownership in Suzuki even to a majority ownership, and Der Spiegel quotes an unnamed top VW Manager: “Ich schließe dies Möglichkeit nicht aus” (I don’t exclude this possibility).

In the same article, Der Spiegel reports that in an unnamed VW Executive’s opinion, future acquisition of a majority of shares of Suzuki by VW has been agreed since the beginning of the negotiations: clearly exactly the opposite of Suzuki-CEO Osamu Suzuki’s public statements – pointing to a huge misunderstanding between both CEOs.

Suzuki Volkswagen divorce: ICC arbitration results

On 30 August 2015, Suzuki announced details of the arbitration in London and its result in a press notice.

According to Suzuki, Suzuki requested VW to terminate the alliance and the capital relationship, but VW apparently did not respond. Therefore, Suzuki gave notice on 18 Nov 2011 of the termination, and on 24 Nov 2011 Suzuki filed for arbitration with the International Court of Arbitration of the International Chamber of Commerce (ICC). Suzuki asked for termination of the agreement with VW, and to rule that VW should sell all Suzuki shares either directly to Suzuki, or to a third party determined by Suzuki.

One 30 August 2015, the ICC ruled:

  • Termination of Suzuki-VW Framework Agreement: Suzuki’s termination notice of 18 Nov 2011 is valid, and the alliance therefore ended on 18 May 2012.
  • Divestment of shares in Suzuki: VW must sell all shares of Suzuki either direct to Suzuki or to a third party nominated by Suzuki
  • Suzuki’s breaches of agreement: IIC found that Suzuki violated some parts of the Framework Agreement, and that damages to be paid by Suzuki to Volkswagen will be determined later.

Lessons to learn from the Suzuki Volkswagen divorce: communication & respect

  • “Comprehensive partnership” without meeting of minds does not work
  • Partnerships are hard when CEOs on both sides don’t have any language in common, thus can’t talk to each other
  • Hidden agendas destroy trust
  • Without trust partnerships don’t work
  • Processes and methods (e.g. acquisitions of minor players all over Europe) successful in Europe often don’t work in Japan
  • Partnerships without respect both ways don’t work
  • Renault and Carlos Ghosn show us how to build a Japanese-European car company alliance, Daimler (with Mitsubishi Motors) and Volkswagen (with Suzuki) show us how it does not work

Suzuki Volkswagen alliance: financial aspects

  • Volkswagen reportedly paid Suzuki 222.5 billion yen (= approx. US$ 2.5 billion) for 19.89% of Suzuki’s shares
  • Suzuki acquired a 2.5% voting stake in Volkswagen for US$ 1.13 billion

On December 9, 2009, Suzuki transferred 107,950,000 treasury shares to Volkswagen AG, valued approximately at 226,695,000,000 yen (= approx. US$ 2.3 billion)

On June 3, 2010, Suzuki announced the offer of additional shares to be issued by third-party allotment to Volkswagen AG to bring Volkswagen’s share up to 19.89% as follows:

  • 3,660,000 newly issued shares
  • issue price 1755 yen per share
  • total proceeds = 6,423,300,000 yen (= approx. US$ 64 million)

Suzuki announced to use the funds received from Volkswagen as follows:

  • 122,484 million yen (= approx. US$ 1.2 billion) for Research and development expenses focusing on environmentally friendly, next generation technology for automobiles
  • 100,000 million yen (= approx. US$ 1 billion) Reduction of interest-bearing liabilities to improve financial position (corresponding roughly to the purchase costs of Suzuki’s 2.5% stake in Volkswagen)

Suzuki Volkswagen divorce: financial aspects

On September 17, 2015, Suzuki announced the acquisition of treasury shares in order to acquire the shares in Suzuki held by Volkswagen AG:

  • Suzuki acquired 119,787,000 Suzuki common stock shares
  • Total amount paid: 460,281,547,500 yen (US$ 3.9 billion)
  • Date of acquisition: Sept 17, 2015
  • Method: Purchase through ToSTNeT-3 on the Tokyo Stock Exchange at 8:45am Thursday 17 Sept 2015 before regular trading hours

Tokyo Stock Exchange’s ToSTNeT (Tokyo Stock Exchange Trading NeTwork) was launched in 1998, and reestablished on Jan 15, 2008, and the ToSTNeT-3 was established specifically for listed companies to acquire their own shares.

Suzuki has more than 1 Trillion yen (US$ 8.3 billion) in cash, and paid for the share purchase in cash from cash reserves.

Volkswagen had informed Suzuki to have sold 111,610,000 shares corresponding to 19.89% of voting shares, corresponding to approx. 463 billion yen ($3.8 billion).

On September 26, 2015, Suzuki announced the sale of all 4,397,000 Volkswagen voting shares Suzuki owned to Porsche Automobile Holding SE

  • Suzuki sold 4,397,000 Volkswagen voting shares to Porsche Automotive Holding SE
  • Suzuki did not announce the sales value. At VW’s current (27 Sept 2015) share price of € 115.82, the total sale revenue is expected to be approximately € 509 million (= approx. US$ 570 million)
  • Completion of sale: Sept 30, 2015
  • Suzuki reports an extraordinary profit of YEN 36.7 billion (= approx US$ 304 million) on this sale.

Ignoring transaction costs, interest, opportunity cost, arbitration and legal fees etc. the balance looks as follows:

  • Volkswagen purchased the 19.89% stake in Suzuki for approx. US$ 2.5 billion and sold the same stake for approx. $3.8 billion, i.e. making approx. US$ 1.3 billion profit
  • Suzuki sold its 19.89% shares to Volkswagen for approx. US$ 2.5 billion, and now repurchased the same shares for approx. $3.8 billion. In parallel, Suzuki purchased 2.5% of Volkswagen voting shares for approx. US$ 1.13 billion. Thus Suzuki overall, theoretically, made a small loss of approx. US$ 30 million on these transactions plus may have to pay damages to VW for breach of contract to be determined later by ICC.

Purely financially, Volkswagen made approx. US$ 1.3 billion profit on this transaction, while Suzuki came out more or less unchanged except for the damages Suzuki may have to pay to Volkswagen.

Suzuki Motor Corporation (スズキ株式会社) – slogan: “Small Cars for a Big Future”

In FY2014, Suzuki sold 750,000 cars in Japan and 1,170,000 cars in India

Suzuki Motor Corporation (スズキ株式会社) was founded by Michio Suzuki (鈴木道雄) (18 Feb 1887 – 27 Oct 1982) in October 1909 as Suzuki Type Machine Manufacturing Workshops (鈴木式織機製作所) in Hamamatsu, Shizuoka-ken.

On 15 March 1920 Suzuki-type Machine KK (鈴木式織機株式会社) was founded, and renamed to Suzuki Motor Engineering KK (鈴木自動車工業株式会社) in June 1954. In October 1990, the company was renamed to today’s name: Suzuki Motor Co Ltd (スズキ株式会社).

Suzuki’s international business includes:

  • Maruti Suzuki India Limited (マルチ・スズキ・インディア)
  • Magyar Suzuki Corporation (マジャールスズキ)
  • Changan Suzuki (長安スズキ)
  • P.T. Suzuki Indomobil Motor (スズキ・インドモービル・モーター)

In FY2014, Suzuki sold:

  • 750,000 cars in Japan
  • 1,170,000 cars in India
  • however, in 2012 decided to end car sales in the USA

Maruti Suzuki India Limited (マルチ・スズキ・インディア) – slogan: “Way of Life!”

Sanjay Gandhi first tried to cooperate with Volkswagen, cooperation attempts with Volkswagen failed, leading to cooperation with Suzuki

Maruti Suzuki India Limited was established in 1981 as Maruti Udyog Limited.

On 16 Nov 1970, the company ‘Maruti technical services private limited’ (MTSPL) was founded by the Indian Government to lay the foundation for an Indian automotive industry, and Sanjay Gandhi was the first CEO.

Sanjay Gandhi contacted Volkswagen AG to seek a cooperation or joint-venture to produce an Indian version of the VW Käfer (Beatle). However, a cooperation with Volkswagen did not work out. The company failed in 1977, and was reborn as Maruti Udyog Ltd by Dr V. Krishnamurthy.

In 1982, Maruti Udyog Ltd and Suzuki entered into a licensing and joint venture agreement, which has developed very well into India’s largest automotive company: today’s Maruti Suzuki India Limited (マルチ・スズキ・インディア).

  • publicly traded (BSE: 532500, NSE: MARUTI)
  • Market capitalization: 1.33 trillion Indian Rupees (US$ 20.23 billion) (as of Sept 18, 2015)
  • Market share in India: approx. 37% (2012) – 45% (2014) of India’s passenger car market (45% for 2014 according to Nikkei Business Online)
  • 6900 employees
  • Suzuki ownership: increased from 26% to 40% in 1987, increased to 50% in 1992. Currently Suzuki owns 54% of Maruti Suzuki.

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Hitachi Rail Europe Ltd opens £82 million train factory in Newton Aycliffe, County Durham, UK

Hitachi

Hitachi received orders for 866 Intercity Express Program (IEP) carriages and for 234 carriages for Abellio’s ScotRail program, following 174 “Javelin” carriages

Hitachi Rail putting competitive pressure on Europe’s rail established rail manufacturers: Hitachi Rail has “on time delivery” at the top of the list of commitments to customers

Winning a series of train contracts, Hitachi Rail invested £82 million (= approx US$ 130 million) in a train manufacturing plant in Newton Wycliffe, Country Durham, UK.

Hitachi Rail Europe announced contracts for the following train carriages to be built in the Newton Aycliffe facility:

The £ 5.8 billion ($ 10 billion) Intercity Express Programme (IEP) was initiated in 2005 by the UK Department of Transport.

Earlier in 2004, Hitachi received an order for 29 6-car high-speed Class 395 “Javelin” trains (a total of 174 carriages), which went into regular service on 30 December 2009 on the Integrated Kent Franchise, between London St. Pancras Station and Ashford International Station, traveling this approx. 100km distance in 37 minutes, an average speed of 162 km/h.

For a background of the international business aspects of Hitachi, read an essay by the emeritus Chairman of Hitachi Europe, and emeritus Board Member of Hitachi Ltd. Sir Stephen Gomersall.

Hitachi Rail to challenge European rail manufacturers Siemens and Alstom

Europe is one of the world’s biggest rail markets, and has a number of established rail manufacturers including:

There has been a series of recent problems in Europe’s established rail industries, which may have contributed to Hitachi’s considerable business success in Europe:

Rail in Europe and in Japan are very very different stories

European rail services are predominantly owned, operated and controlled by Government agencies, and to some extent operations are contracted out for limited periods to private service operators, almost none of Europe’s rail services are fully privately owned and operated – a rare and very successful exception is the Jungfraubahn mountain railway.

Rail services in Japan on the other hand are largely owned and operated by a large number of private railways companies, most of which are very successful and profitable and growing and listed on the stock exchange.

Thus Hitachi Rail is used to satisfying the tough needs of very competitive and privately owned commercial rail operators, while Europe’s rail manufacturers to a large extent sell to Government controlled agencies, or directly to Governments, or under Government programs, such as UK’s Intercity Express Programme (IEP).

The Hitachi investment in context: maybe we see a shift in investment value from traditional manufacturing to intellectual business such as insurance and pharmaceutical research

Compare Hitachi’s £82 million (= approx US$ 130 million) with the recent acquisition of UK insurance company Amlin by Mitsui Sumitomo Insurance Company for £2.5 billion (approx. US$ 3.85 billion or ¥642 billion), or the acquisition of Cambridge/UK Heptares Therapeutics Ltd by the Japanese Sosei Group for US$ 400 million (US$ 180 million in cash plus up to US$ 220 million in incentives).

Of course we are comparing apples and oranges here, and the overall Intercity Express Programme (IEP) is on the order of £ 5.8 billion ($ 10 billion), but we may witness here a shift of investment value from traditional manufacturing to intellectual business such as insurance and pharmaceutical research here.

More about Japan’s electronics and electrical machinery industries

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Mitsui Sumitomo Insurance Company to acquire UK insurance company Amlin

Amlin is an insurer operating the second largest syndicate in London’s Lloyd’s insurance market

Mitsui Sumitomo Insurance Company acquires Amlin for 2.5 billion pounds (approx. US$ 3.85 billion or ¥642 billion)

On Tuesday, September 8, 2015, Mitsui Sumitomo Insurance Company announced the planned acquisition of London based insurer Amlin plc for 2.5 billion pounds (approx. US$ 3.85 billion or ¥642 billion).

Since Amlin plc is traded on the London Stock Exchange, the acquisition process needs to follow a precisely defined process.

Mitsui Sumitomo Insurance Company offered to acquire 100% of shares (517,658,935 shares), offering 670 pence per common share.

The acquisition is expected to close between January and March 2016.

There has been a string of acquisitions in Europe by Japanese insurance companies, which you can find in our Japan to EU M&A register. Some examples are:

In addition, all major Japanese insurers are also active on London’s Lloyds Insurance market, and in other ways in Europe. And these deals are in addition to the acquisition of StanCorp Financial Group by Meiji Yasuda Life Insurance for US$ 5 billion, and HCC Insurance for US$ 7.5 billion by Tokyo Marine.

Mitsui Sumitomo Insurance Company

Mitsui Sumitomo Insurance Company is the company which has announced the planned acquisition of Amlin plc.

Mitsui Sumitomo Insurance Company was founded on October 21, 1918, and has about 14,859 employees on non-consolidate basis.

Mitsui Sumitomo Insurance Company was listed on the Tokyo Stock Exchange (Code: 8725), but was delisted on March 26, 2008, and became a 100% owned subsidiary of MS&AD Insurance Group Holdings KK, which was founded on April 1, 2008, and which assumed the Stock Exchange Code 8725.

Mitsui Sumitomo Insurance Company’s history goes back to 1893, when the Osaka Insurance Company was established.

Mitsui Sumitomo Insurance Group Holdings, Inc.

The Mitsui Sumitomo Insurance Group Holdings, Inc. was founded on April 1, 2008.

On April 1, 2010, The Mitsui Sumitomo Insurance Group Holdings, Inc. was merged with Aioi Insurance and with Nissay Dowa General Insurance Co., Ltd., and the resulting group was renamed: MS&AD Insurance Group Holdings KK.

MS&AD Insurance Group Holdings KK

MS&AD Insurance Group Holdings KK (Tokyo Stock Exchange Code = 8725) was founded on April 1, 2008.

MS&AD Insurance Group Holdings KK companies include:

Amlin plc

Amlin plc was founded on September 28, 1998 and has about 1900 employees.

Amlin plc’s business is a global insurer and reinsurer centered on Lloyd’s market in London. Amlin operates the second largest syndicate in Lloyd’s.

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Financial Times to be sold to Nihon Keizai Shinbun Corporation (株式会社日本経済新聞社, Nikkei Inc.)

Financial Times to be sold to Nihon Keizai Shinbun Corporation (株式会社日本経済新聞社, Nikkei Inc.)

Nikkei won the race. Axel Springer withdrew. £ 94 million made the difference.

On July 23, 2015 at 15:13 (3:13 pm) British Summer Time, Pearson and Nihon Keizai Shinbun Corporation announced the sale of the Financial Times Newspaper to Nihon Keizai Shinbun Corporation for £ 844 million (approx. US$ 1.3 billion) – sending shock waves around the global news industry.

FT: £ 94 million made the difference.

The Financial Times reported that Germany’s Axel Springer Verlag had offered £ 750 million in cash, but within the last 5 weeks Nihon Keizai Shinbun Corporation (Nikkei) quickly closed the acquisition with a 12% higher cash offer of £ 844 million, while Axel Springer withdrew. So it seems that in the end £ 94 million made the difference.

As a privately held company, Nihon Keizai Shinbun Corporation can act faster, and has far less constraints than the publicly traded Axel Springer Corporation.

Clearly in the best case, this acquisition will help Nikkei Inc to globalize and to bring Japan’s financial news and scoops via Financial Times to Western audiences, and vice-versa, and help both to learn from each other to speed up and expand the transition from paper to new digital business models.

Cultural issues and language issues: for effective cooperation, Financial Times leaders will need to learn Japanese and/or Nihon Keizai Shinbun leaders will need to learn much more English….

Writing news is an intensely intellectual activity. There will be interactions between Nikkei’s almost 100% Japanese reporters and Financial Times’ much more diverse creators. Given that almost zero of Financial Times’s staff speak any Japanese, and that knowledge of English language by Nikkei’s creators and editors is extremely limited, these interactions will be necessarily very limited, and will need intense efforts to expand. As you know, learning Japanese for Western people, and learning English for Japanese people is extremely difficult, especially at the level of writing compelling news to short deadlines and for some of the world’s most clever and demanding audiences – who are always able to defect to a Bloomberg terminal or to a news startup – or from this autumn to Apple-News.

Success of this acquisition is possible and could bring great benefits, but is by no means guaranteed.

Much has been written about editorial independence, separation of content creation vs advertising, and differences in editorial style and aggressive reporting between Financial Times’ aggressive London style vs Nikkei’s more obedient Tokyo style. Surely both can learn from each other!

Note also that the acquisition is subject to “regulatory approval”, and this may well impose conditions on the acquisition.

The context?

Nikkei’s acquisition of Financial Times follows on the heels of a long series of acquisitions in Europe by Japan’s advertising and media giant Dentsu. Given the business relationships between Nikkei and Dentsu, these may also have impact on The Financial Times, allowing The Financial Times to sell more advertising via Dentsu.

Another issues of course is, who did NOT acquire the Financial Times: Bloomberg seems to have not been involved, and Axel Springer seems to have withdrawn.

Nikkei Inc is not Japan’s largest media group – there are several much larger Japanese media groups, including the Yomiuri Shinbun group – the world’s largest newspaper group. Will they follow?

The Economist next?

It has been reported, that Pearson is currently also in the process of selling Pearson’s shares in the iconic Economist Group. Following the Financial Times acquisition by Nikkei which has been conducted low profile, we can expect much more participation in a potential Economist sale.

Pearson only owns 50% of The Economist, the remainder is owned by Families (Cadbury, Rothschild, Schroder, Agnelli and others) and Economist staff and former staff.

The Economist is governed by:

  • Trustees:
    • Baroness Bottomley of Nettlestone
    • Lord O’Donnell
    • Tim Clark
    • Bryan Sanderson
  • Board of Directors of 12 people

Therefore The Economist’s government structure enables The Economist’s independence, and acquiring Pearson’s 50% will not allow control of The Economist in the way acquiring 100% of Financial Times does.

How big is Nikkei? 6 times larger circulation than Financial Times! Larger than New York Times + Wall Street Journal combined!

Nihon Keizai Shinbun (Nikkei) has substantially larger distribution than  Wall Street Journal, New York Times or Financial Times
Nihon Keizai Shinbun (Nikkei) has substantially larger distribution than Wall Street Journal, New York Times or Financial Times

Japan’s media sector is very very large, and so is Nihon Keizai Shinbun Corporation.

Nihon Keizai Shinbun Corporation is best known in the west for the NIKKEI index, however this is only a very small part of Nihon Keizai Shinbun Corporation. At the core of Nihon Keizai Shinbun Corporation (Nikkei Inc) is the Nihon Keizai Shinbun (= Japan Economics Newspaper, Nikkei), which appears twice daily, and in terms of circulation is very much larger than New York Times, Wall Street Journal or Financial Times:

Circulation

  • Nikkei: 2.77 million (morning) + 1.39 million (evening) + 0.43 million (digital) = 4.59 million
  • WSJ: 1.463 million (paper) + 0.734 million (digital) = 2.2 million
  • NYT: 0.868 million (paper) + 0.91 million (digital) = 1.8 million
  • FT: .225 million (paper) + .504 million (digital) = 0.73 million

Thus, Nikkei’s circulation is larger than WSJ + NYT combined, or more than 6 times larger than Financial Times’.

However, Nikkei is clearly behind in the transition from paper to digital.

Financial Times, 1/4 the size of the Nikkei Corporation in terms of sales

The Financial Times was founded on January 9, 1888.

Financial Times Group sales have increased from around £ 400 million (approx. US$ 620 million) in 2010 to around £ 450 million (approx. US$ 700 million) in FY 2013.

Nihon Keizai Shinbun Corporation (株式会社日本経済新聞社, Nikkei Inc.)

Nihon Keizai Shinbun Corporation (株式会社日本経済新聞社, Nikkei Inc.) was founded on August 11, 1911, but goes back to the newspaper ChuugaiBukkaShinpou (中外物価新報) which started on January 27, 1889, almost exactly one year after the Financial Times was founded.

Nihon Keizai Shinbun Corporation has the Nihon Keizai Shinbun (日本経済新聞) as its core, but owns and operates a very large number of other publishing and media businesses, including also a 31.46% holding in Televi Tokyo Holdings, one of Japan’s major TV based media groups.

  • Consolidated revenues: YEN 300.6 billion (US$ 2.4 billion) (FY2014)
  • Operating income: YEN 16.7 billion (US$ 0.135 billion) (FY2014)
  • Net income: YEN 10.26 billion (US$ 0.08 billion) (FY2014)
  • Employees: 7319 (Dec 31, 2014)

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TOSHIBA sells KONE holding for approx. US$ 0.95 billion

Toshiba

Toshiba sells its 4.6% holding in Finnish elevator company KONE

TOSHIBA sells KONE holding – fall-out from Toshiba’s accounting issues

TOSHIBA sells KONE holding: In the wake of Toshiba’s accounting issues, Toshiba announced the sale of its 24,186,720 shares, corresponding to a 4.6% holding in Finnish elevator company KONE for EURO 864.7 million (YEN 118 billion, US$ 0.95 billion).

Toshiba Elevators and Building Systems Corporation (TELC) and KONE had entered into a mutual capital investment alliance and exchange of Directors in December 2001.

On June 12, 2015 Toshiba announced a restatement of accounts, and announced the installment of an independent 3rd party committee headed by a former Chief Prosecutor of the Tokyo High Court. On July 20, 2015 the independent 3rd party committee announced income corrections with a total value of YEN 151.8 billion (US$ 1.22 billion).

Toshiba Elevator and Building Systems Corporation (TELC)

Toshiba Elevator and Building Systems Corporation (TELC) is a subsidiary of Japan’s Toshiba Corporation, established on February 16, 1967, the first escalator was installed in 1966, and the first elevator in 1967.

Toshiba Elevators produces advanced elevators, such as double decker elevators.

TELC has sales of approx. YEN 120 billion (US$ 1.2 billion) per year, and employs about 4700 people.

KONE

KONE was founded in 1910. KONE’s annual sales are on the order of EURO 7 billion, and KONE employs about 47,000 people. KONE’s shares are listed on NASDAQ OMX Helsinki Exchange.

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Fits.me acquired by Rakuten

Rakuten

Rakuten continues worldwide acquisitions to globalize

acquired London based virtual fitting room mannequin venture Fits.me

Rakuten, Japan’s largest e-commerce + e-finance group, is acquiring many companies around the world both to acquire technology, and to acquire e-commerce capabilities outside Japan in order to globalize. Find some of Rakuten’s recent acquisitions in Europe listed here: http://eu-japan.com/?s=rakuten

On July 13, 2015 Rakuten acquired London based virtual fitting room venture fits.me, both to acquire technology and we assume, also to contribute to Rakuten’s globalization.

Fits.me – virtual fitting room, robot mannequins, and fit advisor

Fits.me was founded in 2010 by two Estonian friends, Paul Pällin and Heikki Haldre, in Estonia, and in 2012 the company moved its headquarters to London.

Fits.me helps consumers visualize how they might look like dressed with clothes from an e-commerce site, and turning around, Fits.me allows e-retailers to collect data about their potential customers.

Fits.me offers a number of service versions ranging from “virtual fitting rooms” to “fit advisors”.

Once the customers has entered his/her body dimensions, weight and other data, Fits.me’s web mannequins represent the customer’s body dimensions, and show how selected clothing would look like on a web mannequin with the customer’s body data.

Fits.me received US$ 14.3 million in founding in three rounds:

  • Seed: US$ 1.8 million (Sept 22, 2010)
    • Estonian Development Fund
  • Series A: US$ 7.2 million (April 17, 2013)
    • Conor Venture Partners
    • Entrepreneurs Fund
    • Fostergate Holdings
    • SmartCap AS
  • Venture: US$ 5.3 million (Oct 24, 2014)
    • Entrepreneurs Fund
    • SmartCap AS
    • James B Gambrell
  • Total = US$ 14.3 million

Rakuten

Rakuten was founded by Hiroshi Mikitani, and is Japan’s leading e-commerce and e-finance company developing a global footprint through a long series of acquisitions around the globe. Find some of Rakuten’s recent acquisitions in Europe listed here: http://eu-japan.com/?s=rakuten

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Quipper acquired by Japanese media giant Recruit for US$ 39 million

Quipper acquired by Japanese media giant Recruit for US$ 39 million. Atomico, Benesse and Globis Capital Partners had invested US$ 10.1 million

EdTech venture Quipper was founded 2010 by DeNA veteran Masayuki Watanabe (渡辺雅之) in London

Recruit expands from classified-type magazine sites into education

On April 1, 2015, Japanese media giant Recruit acquired London based but largely Japanese managed EdTech venture Quipper for US$ 39 million, providing good returns for three investors, Atomico, Benesse and Globis Capital Partners, who had invested a total of US$ 10.1 million over the period 2011-2014.

Quipper represents a new class of global ventures: largely Japanese entrepreneurs and managers founded a venture in London, taking advantage of London’s global business and venture platform, and especially UK’s very strong education infrastructure and education industry, and developing global EdTech business.

Quipper

Quipper is an EdTech venture developing and marketing quiz based e-learning apps platform for smartphones.

Learning content is provided by teachers, experts, publishing houses, teachers and others.

Founded on December 1, 2010 in London (UK).

US$ 10.1 million funding was invested by three investors in three stages:

  • Seed, Oct 1, 2011: £ 0.4 million by Atomico
  • Series A, May 18, 2012: £ 2.3 million by Globis Capital Partners and Atomico
  • Series A, March 6, 2014: $5.8 million by Atomico and Benesse
  • Total: US$ 10.1 million

Current Quipper team is predominantly Japanese:

  • Masayuki Watanabe (渡辺雅之), CEO
  • Masatomo Nakano, CTO
  • Takuya Nomma, Marketing Director
  • Yosuke Arakaki, Yuta Funase, Joseph Ganderson, Ryan Guerrero, Yusuke Kaneko, Takeyoshi Mizusawa, Satoru Tanabe, Mai Ueno, Annette Tsuda, Business Development

Recruit

Recruit is a Japanese media company with its own original innovative business model. Recruit started with job advertising magazines, and has developed a wide range of advertising platforms for job search, weddings, used cars, and many other areas. Find a description and analysis of Recruit in our Japan Media Report.

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Nidec acquires automotive pump company Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt

nidec 日本電産株式会社

Electrical water pumps (EWP), electrical oil pumps (EOP)

“for everything that spins and moves”

Nidec acquires German pump manufacturer Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt via the subsidiary Nidec Motors & Actuators (Germany) GmbH (“NMA(G)”) on February 2, 2015.

Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt and subsidiaries have been renamed:

  • Germany: NIDEC GPM GmbH
  • Brazil: NIDEC GPM do Brasil Automotiva Ltda.
  • China: NIDEC GPM Automotive Pumps (Suzhou) Co. Ltd.
  • USA: NIDEC GPM North America Corporation

Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt (GPM)

Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt (GPM) develops, manufactures and sells electrical water pumps (EWP), electrical oil pumps (EOP), and modules for passenger cars and commercial vehicles.

Geräte- und Pumpenbau GmbH Dr. Eugen Schmidt has 1002 employees as of December 31, 2014.

NIDEC (日本電産株式会社)>

Founded in 1944 in Kyoto by Nagamori Shigenobu, and produces motors, machinery, optical parts, camera shutters and other electro-mechanical equipment.

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Nidec acquires power generators manufacturer Motortecnica s.r.l.

nidec 日本電産株式会社

Nidec continues acquisitions in Europe in the motor and electrical equipment sector

Nidec: “for everything that spins and moves”

Nidec acquired the Italian electrical machinery construction and repair company Motortecnica s.r.l. on May 15, 2015 via its Italian subsidiary Nidec ASI S.p.A. (formerly, Ansaldo Sistemi Industriali S.p.A), which Nidec had acquired in May 2012.

Motortecnica s.r.l.

Motortecnica was established in 1989 in Salerno (Italy) by Antonio Iorio for the repair of electrical machines. Motortecnica has 77 employees and € 11 million in revenues for the fiscal year ending with December 31, 2014.

Motortecnica is focused on:

  • planning and production of electric machines such as motors and generators
  • construction of electric machine parts: stator coils, rotor coils, connections, whole rotors, whole stators
  • machining
  • diagnostics and repair of electric machines

Motortecnica moved to new headquarters in September 2013 workshops and factory includes:

  • Automatic brazing machine MPM 3000
  • CNC Machining units
  • Vertical lathes
  • Electric furnaces
  • Cut and skin
  • Impulse generators
  • Automatic Meter Zeiss
  • Alternating voltage generator 50 kV – 200 kVA
  • Ridgway Taping machine
  • Stator coil spindle-moulding machine
  • Roebel Transposition press
  • Instrumentation
  • Thermopresse
  • Laser cutter
  • Waterjet
  • Balancing machines maximum 30 tons

Motortecnica invests in equipment, technology and production and maintenance:

  • 2008: € 1 million
  • 2009: € 2 million
  • 2010: € 2.5 million
  • 2011: € 1.5 million
  • 2012: € 1 million
  • 2013: € 2 million
  • 2014: € 1.2 million

Nidec ASI S.p.A. (formerly, Ansaldo Sistemi Industriali S.p.A)

Nidec had acquired Ansaldo Sistemi Industriali S.p.A in May 2012, and renamed the company: Nidec ASI S.p.A. Nidec ASI’s business includes:

  • large industrial motors
  • generators
  • low and high voltage drives
  • industrial system automation and service with focus on the oil & gas, metals, renewable energy, marine and general industry sectors

Nidec was founded in 1944 in Kyoto by Nagamori Shigenobu, and produces motors, machinery, optical parts, camera shutters and other electro-mechanical equipment.

Read our report on Japan’s electronics industry sector to learn more about NIDEC and its place in Japan’s electronics industry sector:
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LIXIL announces losses of YEN 33.2 billion (US$ 265 million) due to Joyou AG’s insolvency filing

LIXIL

LIXIL (“Link to good living”) acquired approx. 70% of German listed Chinese subsidiary Joyou AG via the GROHE acquisition

Joyou AG files for bankruptcy

On January 21, 2014, LIXIL had acquired 87.5% of the German bath fixtures company GROHE Group (“Pure Freude am Wasser”).

The GROHE Group owns 72.3% of Joyou AG, thus Joyou AG became a LIXIL subsidiary in January 2014. Joyou AG had an IPO at the Frankfurter Stock Exchange in 2010.

Joyou AG recently filed for bankruptcy, and on June 3, 2015, LIXIL announced a restatement of accounts and projections, reducing income statements.

LIXIL announced income reductions due to the Joyou AG bankruptcy filing:

  • FY 2013 (ending March 31, 2014) net income reduced by: YEN 23.8 billion (US$ 191 million)
  • FY 2014 (ending March 31, 2015) net income reduced by: YEN 9.4 billion (US$ 76 million)
  • FY 2015 (ending March 31, 2016) net income reduced by: YEN 33 billion (US$ 26.5 million)
  • Total net income reductions (net losses): YEN 66.2 billion (US$ 532 million)

LIXIL plans to increase international business to half of its sales, and these losses represent a setback for LIXIL’s globalization plans – one of Japan’s new companies striving to overcome Japan’s “Galapagos effect”.

LIXIL

Lixil Corporation (“Link to Good Living”), TSE-Code 5938, manufactures building materials and housing equipment and operates home and home building centers.

LIXIL was formed on April 1, 2011 by the merger of:

  • Tostem Corporation
  • Inax Corporation
  • Shin Nikkei Company, Ltd.
  • Toyo Exterior Co., Ltd.
  • Sun Wave Corporation

and has been growing aggressively through acquisitions with the target to achieve 50% sales internationally outside Japan. In particular, jointly with the Development Bank of Japan (DBJ) LIXIL acquired a 87.5% stake in the German GROHE Group in 2013, the American Standard Brands (ABS), and the Permasteelisa Group of Italy.

To become global leaders in building materials and housing equipment, LIXIL has recently acquired:

  • American Standard Brands (ABS), in August 2013 for US$ 542 million
  • American Standard Asia Pacific, in August 2009
  • Permasteelisa Group of Italy in 2011
  • Shanghai Meite Curtain Wall System in 2011
  • LG-TOSTEM, strategic alliance formed in 2010
  • Haier-LIXIL, strategic alliance formed in 2011
  • jointly with the Development Bank of Japan (DBJ) LIXIL acquired a 87.5% stake in the German GROHE Group in 2013, which includes the Joyou AG

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Supercell: Softbank increases ownership to 73.2%

softbank invests in supercell

Supercell valued at US$ 5.3 billion

Softbank and GungHo jointly acquired 51% in October 2013 for US$ 1.5 billion

On June 1, 2015, SoftBank announced an investment to increase the ownership of Supercell stock from 50.5% to 73.2% on a fully diluted basis. This transaction had closed on May 29, 2015.

While Softbank did not officially disclose details of this transaction, VentureBeat/GamesBeat reported that SoftBank this time paid US$ 1.2 billion for this additional 22.7% of ownership. Thus by dividing US$ 1.2 billion by 22.7% we can calculate a market value of US$ 5.3 billion.

Supercell is reported to have achieved revenues of US$ 1.7 billion and income of US$ 0.5 billion in 2014.

SoftBank and GungHo together acquired 51% of Supercell for US$ 1.5 billion in October 2013: SoftBank invested US$ 1.2 billion (80%), while GungHo invested US$ 306 million (20%). GungHo sold its share to SoftBank in August 2014.

Clash of Clans ranked No. 7 top grossing in Japan’s iOS app store

Supercell achieved an important position in Japan’s smartphone game market:

Currently Clash of Clans is ranked No. 7 top grossing app in Japan’s iOS app store, and No. 6 in the Games category (source: Apple App Store ranking).

According to AppAnnie, on June 1, 2015, Supercell’s games Clash of Clans, Hay Day and Boom Beach were ranked as the No. 1 top grossing games for iPad in 149, 128 and 112 countries respectively.

Learn about Japan’s game makers and markets – our report

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Yanmar to acquire 70% of Himoinsa

Yanmar

Diesel engine maker Yanmar to partner with generator manufacturer Himoinsa

Yanmar and Himoinsa to provide solutions for energy markets including cogeneration

On April 27, 2015, diesel engine maker Yanmar and electricity generator maker Himoinsa announced a partnership, including Yanmar to acquire 70% of Himoinsa, to strengthen their solution business for energy markets including cogeneration.

Both Yanmar and Himoinsa are privately held companies, so the amount of information released is quite thin, however we can expect this partnership to help Himoinsa to strengthen business in Asia, where Himoinsa is active since 1999 and currently achieves about 20% of business, while Yanmar will be able to strengthen business particularly in the Hispanic parts of the world.

On the technical and product side, we can expect a range of jointly developed products.

Yanmar has supplied diesel engines for Himoinsa generators since 2006.

Himoinsa – “The Energy”

Himoinsa was founded in 1982, and is based in San Javier, Murcia, Spain.

Himoinsa manufactures and markets products including:

  • diesel generators from 3 kiloWatt to 3 MegaWatt
  • fas generators from 3 kiloWatt to 3 MegaWatt
  • diesel generators from 8 Watt to 3.5 MegaWatt
  • lighting towers up to 1.32 Mega-Lumen

Annual revenues are on the order of US$ 300 million:

  • 50% of revenues in Europe and Africa
  • 30% of revenues in the Americas
  • 20% of revenues in Asia Pacific, where Himoinsa started in 1999.

Currently nine production centers, including:

  • Headquarters and main factory in Murcia, Spain, including R&D Centre.
  • Plant Metal 1, Murcia
  • Plant Metal 2, Murcia
  • Himoinsa, China in Changzhou (Jiangsu)
  • Hipower Systems, Lenexa, Kansas, USA
  • Genelec S.A.S, Villefranche sur saone, France.
  • Control & Switchgear Himoinsa PVT Ltd, production site at Pantnagar, Uttaranchal, India.
  • Brazil
  • Argentina

Yanmar Holdings KK (ヤンマーホールディングス株式会社) – “Solutioneering Together”

Yanmar Holdings KK (ヤンマーホールディングス株式会社) is privately held:

  • Consolidated revenues: YEN 650.7 billion (US$ 5 billion) FY 2013, ended March 31, 2014
  • Consolidated operating income: YEN 44.8 billion (US$ 0.37 billion) FY 2013, ended March 31, 2014
  • Group employees: 16,678 as of March 31, 2014

Yamaoka Magokichi (山岡 孫吉, March 22, 1888 – March 8, 1962) founded the company “Yamaoka Engine Manufacturing” (山岡発動機工作所) in March 1912, trading in gas engines. In 1921 the brand/trademark Yanmar (ヤンマー) was created.

In 1920 the company began to produce small oil engines for agricultural applications.

In 1947 the company began to produced small diesel engines for fishing boats, and in 1952, the company name was changed to Yanmar Diesel KK (ヤンマーディーゼル株式会社).

In 2010 the company adopted the slogan “Solutioneering Together”.

On April 1, 2013, the group was restructured under the holding company Yanmar Holdings KK (ヤンマーホールディングス株式会社) .

Yanmar produces mainly diesel engines, and also a range of related products including:

  • fishing boats
  • hulls for ships
  • tractors
  • combine harvesters
  • rice-planting machines
  • gas heat pumps
  • snow throwers
  • mini excavators
  • portable diesel generators
  • and other equipment and machinery

Unmanned aerial vehicles – UAV, drones

Since approx. 1995, Yanmar also develops and markets unmanned aerial vehicles (UAV, drones) including:

  • Yanmar YH300 SL
  • Yanmar AYH-3

Cogeneration

Himoinsa and Yanmar jointly offer a range of cogeneration solutions.

Cogeneration is the joint production of heat and electricity and can save substantial amounts of primary energy compared to the separate production of heat and electricity in separate plants.

Yanmar advertising and branding

ヤン坊マー坊天気予報 (Yanbou and Mabou weather forecast)

In Japan Yanmar became famous for very characteristic and successful advertising.

Yanmar used two mascots (Yanbou and Mabou) for sponsoring weather forecast (ヤン坊マー坊天気予報) on TV between June 1, 1959 and March 31, 2014:

  • ヤン坊 (ヤンぼう, Yanbou)
  • マー坊 (マーぼう, Mabou)

In July 2013 the official Yanbou Mabou Weatherforecast site was closed – read the official notice here.

You can find this branding explained on Yanmar’s website here.

And you can listen to Yanmar’s famous TV Commercial song here.

And have all your questions answered here.

Look for yourself

Copyright (c) 2015 ·Eurotechnology Japan KK All Rights Reserved

Domino Printing Sciences plc to be acquired by Brother Industries

Transition from analog printing to digital printing drove coding and marking printer Domino to partner with a stronger company

Domino valued at 1.03 billion pounds (US$ 1.5 billion)

97% of today’s printing is analog, however there is a transition now to digital printing. Domino Printing Sciences is specialized on analog printing and now transitioning to digital printing, and needed a financially stronger partner to support increasing R&D costs and to finance expansion into the rapidly growing digital printing markets.

Brother Industries announced its intention to acquire publicly traded Domino Printing Sciences plc following the acquisition process prescribed in the UK for a total of around 1.03 billion pounds.

Domino Printing Sciences plc. “Domino. Do more.”

Domino Printing Sciences plc was founded as a spin-out from Cambridge Consultants in 1978 by Graeme Minto in Cambridge, UK, building on continuous inkjet printing technology (CIJ), and today has about 2300 employees and annual revenues of UKL 350 million (= US$ 526 million).

Domino explains its business in a series of infographics on Pin-it:

abaGada, Israeli digital performance agency, acquired by Dentsu and to be rebranded as iProspect

Dentsu 電通

Dentsu continues acquisition of digital and mobile agencies in Europe and Israel

To overcome cultural issues of a traditional Japanese leading corporation, Dentsu acquires via London based Dentsu Aegis Network

On April 20, 2015 Dentsu announced another investment in its quest to strengthen its global footprint and to strengthen capabilities in mobile and digital: Dentsu acquires Israeli digital performance agency abaGada Internet Ltd..

abaGada Internet Ltd. – performance marketing: “Building your online marketing strategy to deliver outstanding results”

abaGada Internet Ltd. was founded by current CEO, Eval Chen, in May 2010 in Tel Aviv, Israel, and employs about 22 people.

Revenues were about UKL 3.5 million in the year ended December 2014.

abaGada performs search engine marketing (SEM) to increase customers’ website traffic, analysis of customer and user behavior.

Dentsu plans to rebrand and integrate abaGada into Dentsu’s iProspect brand.

abaGada as Dentsu’s technology hub in Israel

Many large global corporations have operations in Israel to link into Israeli’s legendary innovative strengths. Israel’s technology strength and attraction for Japanese corporations was recently visualized at a series of events in Tokyo, e.g. The Israeli Venture Fund meeting in Tokyo on March 4, 2014.

With the acquisition of abaGada, Densu now also has an antenna into Israel’s innovations.

Dentsu and Dentsu-Aegis

Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.

A big step forward towards a larger global footprint for Dentsu was the acquisition of the London based Aegis Group, announced on July 5, 2012.

Report on Japan’s media landscape (150 pages, pdf file):
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Copyright·©2009-2015 ·Eurotechnology Japan KK·All Rights Reserved·

Nippon Life Insurance partners with AXA Life Insurance

Nippon Life Insurance (日本生命保険相互会社) acquires 1% of stock of AXA Life Insurance

Nippon Life Insurance and AXA to jointly offer health insurance product Medi-AxN

Nippon Life Insurance (日本生命保険相互会社) and AXA Life Insurance announced a partnership, and Nippon Life intends to acquire 1% of outstanding shares of AXA Life Insurance to develop a long-term partnership.

Currently AXA’s market capitalization is US$ 62 billion, therefore Nippon Life’s 1% investment in AXA corresponds to about US$ 0.62 billion.

Nippon Life Insurance and AXA are planning to jointly market the health insurance product Medi-AxN (メディ・アン).

Nippon Life Insurance (日本生命保険相互会社)

Nippon Life Insurance (日本生命保険相互会社) was founded on July 4, 1889, is based on Osaka, and has a total of 70,806 employees (of which 18,481 are in-house employees).

Nippon Life Insurance (日本生命保険相互会社) has 113 branch offices, 1562 sales offices and 12,567 distribution partners.

Nippon Life Insurance (日本生命保険相互会社, 日本生命) is a mutual company (相互会社), and not currently traded on any stock exchange.

Annual sales: YEN 7 201 billion (= US$ 60 billion) (FY 2013)
Net income: YEN 248 billion (=US$ 2 billion) (FY 2013)

AXA Life Insurance (アクサ生命保険株式会社, アクサ生命)

The AXA Group is active in 59 countries with about 157,000 employees, with about 100 million customers.

Annual sales: € 92 billion (2014)

AXA is traded on the Paris Euronext exchange.

Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

Sompo Japan Nipponkoa Holdings Inc to acquire 15% of French reinsurer Scor SE

Sompo continues globalization

Sompo to acquire 15% of Scor SE for approx. US$ 915 million

On March 6, 2015, Sompo Japan Nipponkoa Holdings Inc (損保ジャパン日本興亜ホールディングス株式会社) announced the investment in the French reinsurer Scor SE, as follows:

  • 7.8% (8.1% of voting rights) from largest shareholder, Patinex AG. Patient is a Swiss holding company, owned by Martin and Rosmarie Ebner.
  • Sompo plans to increase holding to 15% and send Board Director

Acquisition of 15% share holding corresponds to approx. € 0.83 billion (= US$ 0.9 billion) based on the current market capitalization of SCOR SE.

Sompo Japan Nipponkoa Holdings Inc (損保ジャパン日本興亜ホールディングス株式会社)

Sompo Japan Nipponkoa Holdings Inc (損保ジャパン日本興亜ホールディングス株式会社) was founded in 2010 by the merger of Sompo Japan and Nipponkoa Insurance.

Sompo Japan Nipponkoa Holdings Inc is traded on the Tokyo Stock Exchange (Stock Code 8639), and current market capitalization is approx. YEN 1650 billion (= approx. US$ 14 billion)

In 2013, Sompo acquired UK reinsurer Canopius Group Ltd for UKL 594 million (US$ 972 million).

Scor SE

Scor SE (SE= Societas Europaea) was established in 1970 has a market capitalization of about € 5.55 billion (as of March 5, 2015).

SCOR is listed on Euronext Paris and on SIX Swiss Exchange.

Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

Sir Stephen Gomersall on UK-Japan relations & globalization

Sir Stephen Gomersall

Sir Stephen Gomersall on corporate governance: Board Meetings should be like sparkling water – not like tea

Globalization and the art of tea

Hitachi – Japan’s most iconic corporation – under the leadership of Chairman & CEO, Hiroaki Nakanishi embarked on the “Smart Transformation Project” to globalize, to face a world where value creation has moved from manufacturing to innovation and solving customer’s problems, and to overcome long years of stagnation and low profits or losses, despite strong technology capabilities.

One of the most important brains behind Hitachi’s reinvention and globalization is Sir Stephen Gomersall. After a long and successful career as diplomat in the British Foreign Service, culminating in the years as British Ambassador to Japan 1999-2004, Sir Stephen joined Hitachi in 2004 as the first foreigner responsible for proposing and implementing Hitachi’s overseas regional strategy. Later Sir Stephen became responsible for all of Hitachi’s business in Europe as Chairman and Chief Executive of Hitachi Europe, and in addition Sir Stephen also served as Director on the Board of all Hitachi 2011-2014 overseeing all of Hitachi Group’s business as Board Director. With Sir Stephen’s leadership Hitachi achieved major business breakthroughs in Europe.

On March 5, 2015, Sir Stephen gave the “Princess Chichibu Memorial Lecture to the Japan British Society at Ueno Gakuen University in Tokyo with deep insights on Japan-British relations, on comparison of Britain’s and Japan’s position in the world, and on the challenges of globalization facing Japan and Japanese corporations – in particular Hitachi.

Sir Stephen is very clear that there is no alternative to globalization: “Globalisation poses tough challenges for Japanese companies, but is the only way forward”.

Read Sir Stephen’s lecture here:

Sir Stephen Gomersall: “Globalisation and the art of tea” (click the link above to read the full text of Sir Stephen’s Princess Chichibu Memorial Lecture)

Sir Stephen Gomersall

Stephen Gomersall was British Ambassador to Japan from 1999-2004, and Hitachi’s Chief Executive for Europe and subsequently Board Director from 2004-2014. He is now Adviser to the CEO, Hitachi Ltd.

Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

MixRadio: from Nokia to Microsoft to LINE

LINE

Messaging giant LINE continuous globalization

MixRadio will complement LINE’s local Japanese LINE Music service

In December 2014, LINE and Microsoft announced that LINE will acquire the streaming music service MixRadio from Microsoft.

LINE already operates a Japan-only streaming music service “LINE Music”. Since music licensing is largely country or region specific, with this acquisition, LINE can develop global streaming music services building on existing licenses.

MixRadio

The service was developed as “NOKIA comes with Music” by NOKIA in 2007, a streaming music service which was built into certain NOKIA phones. Over the years, NOKIA also used the product names Nokia Music, Nokia Music Store and OVI Music Store for this streaming music service.

With the acquisition of NOKIA’s handset unit by Microsoft, the company became part of Microsoft, and Microsoft changed the name to “MixRadio”.

The company operates currently in 31 countries, and has a catalogue of about 36 million songs using the MP3 file format without Digital Rights Management (DRM) protection.

Competitors are Spotify and others.

Headquarters are in Bristol, UK, current CEO is Jyrki Rosenberg.

LINE Corporation

LINE Corporation is a Japanese/Korean messaging group, which is also the No. 1 top grossing global iOS and Android app provider.

For detailed discussion, see Japan game market report (398 pages, pdf-file):
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Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

Mindworks – “the fastest growing digital agency in Greece” – to be acquired by Dentsu

Dentsu 電通

Dentsu continues acquisition of digital and mobile agencies in Europe

To overcome cultural issues of a traditional Japanese leading corporation, Dentsu acquires via London based Dentsu Aegis Network

On March 11, 2015 Dentsu announced another investment in its quest to strengthen its global footprint and to strengthen capabilities in mobile and digital: Dentsu acquires 80% of Greek leading independent digital agency Mindworks, and plans to integrate Mindworks into Dentsu’s Isobar and iProspect networks.

Dentsu has also acquired options to acquire the remaining 20% of Mindworks by 2017.

Mindworks – “the fastest growing digital agency in Greece”

Mindworks was founded in 2003, acquired by Atcom in 2009, and became an independent company again in January 2015.

As a division of Atcom, in the financial year ending December 2014, Mindworks had revenues of EURO 7.3 million. Mindworks has about 60 employees.

Mindworks – to be renamed Isobar-iProspect Advertising Services SA

Mindworks will be renamed Isobar-iProspect Advertising Services SA, and will be integrated into Dentsu’s global Isobar and iProspect brands, representing Isobar’s and iProspect’s entry into Greece’s markets.

Dentsu and Dentsu-Aegis

Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.

A big step forward towards a larger global footprint for Dentsu was the acquisition of the London based Aegis Group, announced on July 5, 2012.

Report on Japan’s media landscape (150 pages, pdf file):
[buy][more information][preview on slideshare]

Copyright·©2009-2015 ·Eurotechnology Japan KK·All Rights Reserved·

Nikon enters medical sector with offer for acquisition of Optos plc – “The retina company”

Nikon diversifies from digital cameras to medical imaging

Retinal imaging market estimated to grow to US$ 530 million in 2019

Currently 70% of Nikon’s business are digital camera, a rapidly shrinking market due to the popularity of smartphone cameras.

Inspired by SONY‘s investment in medical imaging company Olympus, Nikon diversifies from digital cameras into medical imaging, acquiring the Scottish retinal imaging company Optos plc – “The retina company”.

Nikon is reported to have approached Optos plc in December 2014, but seems to have been rejected.

On February 27, 2015, NIKON Corporation and Optos plc jointly announced the agreement for a recommended cash offer my by NIKON for the entire issued and to be issued share capital of Optos. Details can be found on NIKON’s official website for the Optos offer, where NIKON essentially offers a total of UKL 250.48 million (US$ 387 million) for all shares of Optos.

Optos plc – The retina company

Optos plc was founded by Douglas Anderson in 1992 after his son became blind on one eye, because his retina detachment was diagnosed too late.

Optos plc had IPO on the London Stock Exchange in February 2006. Market capitalization on February 27, 2015 was UKL 250.48 million (US$ 387 million), jumping from approx. UKL 191 million (US$ 295 million) on February 26, 2015.

Optos has a market share of about 30% of the global market for retinal imaging. The global market size of devices for retinal imaging is growing and estimated to become US$ 530 million in 2019.

Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

NTT Communications reportedly in talks to acquire German data center operator e-shelter facility services GmbH

NTT eurotechnology.com

NTT Communications to continue global expansion

e-shelter offers about 90,000 square meters of data center space in 9 locations

NTT Communications is reported by Nikkei to be in negotiations to acquire Frankfurt based e-shelter facility services GmbH for approximately YEN 100 billion (US$ 840 million).

NTT Communications acquisition is driven by the need to grow outside of Japan, and by the need to offer global services.

e-shelter facility services GmbH

e-shelter facility services GmbH was founded in 2000, and offers 90,000 square meters of data center space in 9 locations across Germany, Switzerland and Austria.

e-shelter data centers

NTT Communications

NTT Communications was created with the privatization of NTT, which is formerly was Japan’s domestic monopoly telecommunications operator (KDD was had the monopoly for overseas telecommunications from Japan).

NTT Communications started globalization with the acquisition of US internet access, hosting and service provider VERIO for a approximately US$ 5.5 billion, announced on May 8, 2000.

Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

Hitachi agrees with Finmeccanica S.p.A. to acquire rail business of AnsaldoBreda S.p.A. and 40% of rail signaling company Ansaldo STS S.p.A.

Hitachi

AnsaldoBreda rail business to help Hitachi to compete globally with Siemens, Bombardier and Alstom

Finmeccanica accelerates restructuring, reduces debt and focuses on aerospace, defense and security

Hitachi Ltd (株式会社 日立製作所) and Finmeccanica S.p.A. announced on February 24, 2015, that their Boards of Directors have agreed for Hitachi to:

  • acquire the rail business of AnsaldoBreda S.p.A. (with some exceptions) for € 36 million (US$ 41 million), and
  • to acquire Finmeccanica’s 40% holding in the rail signaling and rail systems company Ansaldo STS S.p.A. for € 773 million (approx. US$ 880 million)

Hitachi is expected to be required to launch a tender offer for all remaining shares of Ansaldo STS S.p.A. and if successful, will acquire all of Ansaldo STS S.p.A..

Estimating the overall acquisition size:

Hitachi and Hitachi Rail

Hitachi is generally considered as one of Japan’s most important and most representative companies. Hitachi was founded in 1910 bei Namihei Odaira, and produced Japan’s first electrical motors. (For a detailed analysis of Hitachi and Japan’s electronics industry, read our report “Japan electronics industries: mono zukuri“.

Hitachi’s “Smart Transformation”

While Hitachi grew into a conglomerate with a large number of different business areas, during the 15 years 1997-2012, Hitachi grew with an annual compound growth rate of only 0.48%, and during the period 1997-2012 suffered average annual net losses of YEN 45 billion (US$ 0.45 billion) per year. This difficult business situation is characteristic of Japan’s electronics industry overall, as discussed in our report “Japan electronics industries: mono zukuri“. One reason for this difficult situation is the so-called “Galapagos Effect“.

Indeed, Hitachi’s “Chief Transformation Officer” (CTrO) explained recently, that it is only in 2011/2012 that Hitachi started to benchmark important business performance data (eg. operating margin, R&D expenditure, administrative expenses, cost of sales etc) internationally. Until 2011/2012 Hitachi had only compared performance data with other Japanese companies such as Toshiba.

In April 2010, Hiroaki Nakanishi was appointed President of Hitachi, and he started the “Hitachi Smart Transformation Project” with the aim to rebuild a strong Hitachi into a truly global company. (You can find an overview of Hitachi’s Smart Transformation Project in our report: “Japan electronics industries: mono zukuri“).

Hitachi has great strengths in rail engineering, and the acquisitions of AnsaldoBreda and Ansaldo STS are an implementation of Hitachi’s Smart Transformation Project.

Other recent acquisitions and investments by Hitachi in the railway engineering field include:

AnsaldoBreda S.p.A.

AnsaldoBreda S.p.A. was formed in 2001 by the merger of the companies Ansaldo Trasporti and Breda Costruzioni Ferroviarie, and employs about 2400 employees.

Gio. Ansaldo & C. was founded in 1853 in Genoa to manufacture steam engines, steam locomotives, rail rolling stock.

Ing. Ernesto Breda and C. was founded in 1886, and became Societa Italiana Ernesto Breda (SIEB) in 1899.

AnsaldoBreda in cooperation with Bombardier produces the Italian high-speed train Frecciarossa, and other trains for many mainly European and US rail operators. Recently there have been a number of delivery problems, e.g. the IC4 for Denmark, and the Dutch/Belgian high speed train Fyra, a project which was abandoned on 31 May 2013 after its operating license was suspended by the authorities.

AnsaldoBreda businesses:

  • High speed trains
  • Trams
  • Driverless metro (e.g. in Taipei, Copenhagen, Salonicci, Riyadh, Milano, Honolulu, Brescia)
  • Metro (e.g. Circumvesuviana, Madrid, Fortaleza, Meneghino, Los Angeles, Miami Dade Country, Milano)
  • Commuter trains
  • Locomotives
  • Services

Ansaldo STS S.p.A.

Ansaldo STS S.p.A. is a manufacturer of rail signaling and transportation systems, and was founded in 2006 by the merger of a number of railway engineering companies, including:

  • US Union Switch & Signal (US&S), founded by George Westinghouse in 1881 in Pittsburgh, USA.
  • Compagnie des Signaux pour Chemins de fer (CSE), founded by Fernand Cumont in 1902, which built the first lines of the Paris Metro. Later renamed Company and Business Electrical Signals (CSEE)

40% of Ansaldo STS S.p.A.‘s shares are owned by Finmeccanica S.p.A. and Finmeccanica has now agreed to sell these 40% of shares to Hitachi. The remaining 60% are traded on the Borsa Italiana, and it is reported that Hitachi will be required to launch an offer to purchase all remaining 60% of shares following the acquisition of 40% from Finmeccanica.

Finmeccanica S.p.A.

Finmeccanica S.p.A. is an Italian industrial group, founded in 1948. As of 23 December 2014, 32.45% of Finmeccanica shares are owned by the Italian Ministry of Economy and Finance.

With the sale of the railway businesses, Finmeccanica will focus on aerospace, defense and security core business.

Japan electronics industries – mono zukuri. Preview this report:

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Copyright (c) 2016 Eurotechnology Japan KK All Rights Reserved

Sosei Group acquires Cambridge/UK based Heptares Therapeutics Ltd for up to US$ 400 million

Sosei Group acquires candidate drugs to compensate for expected loss of patent protection for the Seebri inhaler in 2026

Heptares Therapeutics Ltd emerged from the MRC Laboratory of Molecular Biology at the University of Cambridge

Sosei Group Corporation (そーせいグループ株式会社) is a Japanese pharmaceutical group which mainly in-licenses pharmaceutica in Europe and North America, then brings these pharmaceutica to Proof-of-Principle stage in Japan, and consecutively out-licenses these pharmaceutica for further development and marketing.

In 2026, Sosei is expected to lose patent protection for its Seebri inhaler, and to compensate for this expected loss in revenues, Sosei acquired the Cambridge (UK) based Heptares Therapeutics Ltd for up to US$ 400 million (US$ 180 million in cash plus up to US$ 220 million in incentives if certain milestones are reached).

Heptares Therapeutics Ltd

Heptares Therapeutics Ltd creates novel pharmaceutica targeting G protein-coupled receptors (GPCRs) using its StaR drug design technology.

Heptares Therapeutics Ltd started based on the research by Richard Henderson and Christopher Tate a the MRC Laboratory of Molecular Biology at the University of Cambridge (UK).

Heptares Therapeutics Ltd previously was funded by a consortium including MVM International Life Science Capital Management, Clarus Lifescience II LP, Novartis Bioventures Ltd., Takeda Ventures Inc. and the Stanley Family Foundation.

Sosei Group Corporation (そーせいグループ株式会社)

Sosei Group Corporation (そーせいグループ株式会社) was founded on June 22, 1990 with the main purpose to in-license pharmaceutica in the European and North American markets, to develop these pharmaceutica to the point of Proof-of-Principle (POP) in Phase 2a, and then to out-license these pharmaca for further development and marketing in Japan.

Sosei Group Corporation (そーせいグループ株式会社) is listed on the Tokyo Stock Exchange, Mothers Section (TSE 4565).

Sosei Group companies and subsidiaries

  • Holding Company: Sosei Group Corporation (そーせいグループ株式会社) (Tokyo and London, UK)
    • Sosei Co. Ltd.(株式会社そーせい) (Tokyo): pharmaceutical development and sales, business development in Japan
    • Sosei R&D Ltd. (London, UK): licensing and business development outside Japan
    • Activus Pharma Co., Ltd.(株式会社アクティバスファーマ) (Chiba, Japan): pharmaceutical development based on nano technology (APNT = Activus Pure Nano-particle Technology)
    • Jitsubo Co., Ltd. (JITSUBO株式会社)(Tokyo): development of peptide drugs, licensing of peptide API manufacturing technology, research related to discovery of peptide drug candidates. Acquired on December 11, 2014. Jitsubo KK was established in April 2005 by Professor Kazuhiro Chiba of the United Graduate School of Agricultural Science, Tokyo University of Agriculture and Technology. Sosei Group acquired 68.7% of voting rights for YEN 421 million (US$ 3.5 million)
    • Sosei CVC Ltd. (そーせいCVC株式会社 / そーせいコーポレートベンチャーキャピタル株式会社) (Tokyo): managing Sosei RMF1 (Regenerative Medicine Fund)

Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

Wuaki.tv acquired by Japan’s e-commerce giant Rakuten

Rakuten

Wuaki.tv: Your online video service

Rakuten’s first entry into Spain’s markets

On June 13, 2012, Rakuten acquired Spanish online streaming video-on-demand (VOD) provider Wuaki.tv.

Wuaki.tv – slogan: Your online video service

Wuaki.tv was founded 2009 in Barcelona by current CEO Jacinto Roca.

Wuaki.tv is funded by Bonsai Capital, Axon Capital, and Marc Ingla, former Vice-President of the football club “Futbol Club Barcelona”.

Wuaki.tv offers on-demand internet rental streaming video / media based on content distribution agreements with major Hollywood studies, local studies, and partnership agreements with TV and other device manufacturers. Download or storage is currently not supported.

  • “rental” is typically for unlimited viewing within a 48 hours rental period
  • “buying” typically allows unlimited viewing for a period of 3 years or longer
  • “Season Pass” available for some TV series

Wuaki.tv about Wuaki.tv: “We offer the latest Hollywood blockbusters, the most popular TV series, and the best films from independent filmmakers. All this, easily accessible from your computer, Smart TV, tablet, phone and gaming console.” (from the Wuaki.tv website)

Subscribers:

  • Spain: 600,000
  • Andorra:
  • United Kingdom: 400,000 (December 2014), started in July 2013 at an introductory price of UKL 2.99/month (to be raised to UKL 5.99)
  • France: (start on September 15, 2014 with a soft-launch for 10,000 users). Rakuten is planning to leverage PriceMinister’s 20 million members
  • Total: 1.85 million (December 2014)

Wuaki.tv is reported to enter Italy, Germany and 12 more markets in the near future.

Platforms:

  • Android
  • Chromecast
  • iPad
  • PC (with Adobe Flash Player (version 10 or higher) installed)
  • Mac (with Adobe Flash Player (version 10 or higher) installed)
  • PlayStation 3
  • PlayStation 4
  • SmartTV (eg. Samsung, LG, Panasonic etc)
  • Xbox360, XboxONE
  • EETV set top box

Platform usage (December 2014):

  • TV: 40%
  • Smartphones and tablets: 28%
  • PC/Mac web browser: 21%
  • Game consoles: 11%
  • Total: 100%

Copyright (c) 2012-2015 Eurotechnology Japan KK All Rights Reserved

Canon offers SEK 23.6 Billion for CCTV leader Axis AB

Canon aims for leadership in the US$ 15 billion global video surveillance market

Canon offers 50% premium on Axis Aktiebolag share price of Monday Feb 9, 2015

Canon is one of Japan’s most successful electronics groups, with imaging as one of Canon‘s core business areas.

On February 10, 2015, Canon launched a public offer with a total value of about SEK 23.6 billion (US$ 2.8 billion) to acquire all outstanding shares of the Swedish surveillance video company Axis Aktiebolag. The public offer will start on March 3, 2015, and is expected to end on April 1, 2015.

Canon aims for leadership in the global video surveillance market

With this acquisition (if successful), Canon is aiming to become a global leader in the video surveillance market, which is estimated to be about US$ 15 billion globally.

Axis Aktiebolag

Axis is traded on the Nasdaq Stockholm (Large Cap) stock exchange. The trading symbol is AXIS, and the ISIN Code is SE0000672354.

Axis to remain independent entity with current management

Under the applicable Takeover Rules, Axis Board of Directors needs to express an opinion on the impact of the potential takeover on employment, on Canon’s strategic plans, and the impact of these strategic plans on employment and the communities in which Axis does business.

Axis Board of Directors declared Canon’s intention to keep Axis AB as an independent entity under the current management, and continuing the current company culture, and to retain the Axis brand name.

Axis Board of Directors’ statement of February 10, 2015 can be found here on the Axis website.

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itelligence AG acquired by NTT Data

NTT eurotechnology.com

NTT DATA Business Solutions

Largest global SAP reseller and one of the largest SAP solution providers

On 23 October 2007, NTT DATA, NTT DATA Europe and itelligence AG announced a partnership, and NTT DATA announced to intention of an offer to acquire the shares at € 6.20 per share, about 37.2% higher than the closing price as of 22 October 2007.

On 13 November 2007, NTT DATA Europe published an offer to acquire outstanding shares. This offer ended at midnight on 2 January 2008, and NTT DATA Europe acquired 20,974,169 (= 87%) of outstanding shares, corresponding to an acquisition value of € 130 million, and a total company valuation of € 149.5 million.

On 29 January 2008, NTT DATA sold 2,459,523 shares to NTT Communications Corporation for € 15 million corresponding to € 6.10 per share, leaving NTT DATA with 18,514,646 shares.

On 20 December 2012, NTT DATA Europe announced that it had acquired an additional 3,831,574 shares (= 12.77%) in another tender offer, and an additional 1,317,605 shares (= 4.39%) outside this offer. As a result, NTT DATA holds a total of 29,544,428 shares (= 98.43%). Following this tender offer, NTT DATA proposed a “squeeze out” (aktienrechtlicher Squeeze-out) under the German Stock Corporation Act to acquire the remaining outstanding shares.

On 23 May 2013, the Annual General Meeting of itelligence AG approved the squeeze-out of remaining minority shareholders at a cash compensation of € 10.80 per share.

itelligence AG was delisted from the Stock Exchange in June 2013.

Thus itelligence AG on 23 May 2013 became a 100% owned subsidiary of NTT DATA Europe GmbH & Co KG, but will continue to operate as an independent group within the NTT DATA Group.

NTT DATA Business Solutions

In 2012 itelligence AG added to co-branding NTT DATA Business Solutions

itelligence AG “We make the most of SAP solutions!”

itelligence AG is a SAP solution provider.

Company history:

  • 1989 Herbert Vogel and Wolfgang Schmidt founded S&P as a management consulting firm focused on introducing SAP. S&P was one of SAP’s first partner companies.
  • 1994 S&P was converted into “SVP GmbH” (Schmidt Vogel & Partner)
  • 1999 SVP GmbH was converted into SVC AG (Schmidt Vogel Consulting) and listed in an IPO
  • On 7 May 2001, the shareholders of SVC AG Schmidt Vogel Consulting agreed in the merger with APCON AG, forming itelligence AG
  • On 23 October 2007, itelligence AG entered into a partnership with NTT DATA
  • On 23 May 2013 itelligence AG became a 100% owned subsidiary of NTT DATA and the shares of itelligence AG were delisted

itelligence AG acquisitions

itelligence AG (and therefore NTT DATA via itelligence) has acquired a number of companies in the SAP solutions field:

  • 2008: acquires shareholding in SAPCON a.s.
  • 2009: ADELANTE SAS: On 19 March 2010 intelligence acquired 51% of ADELANTE SAS.
  • 2009: Chelford SAP Solutions: on 6 August 2010, itelligence AG acquired 100% of Chelford SAP Solutions
  • 2009: acquires RPF Consulting LLC
  • 2009: acquires participation in 2B Interactive
  • 2010: 2C Change A/S: on 14 June 2011, itelligence AG acquired 60% of 2C change A/S and an option to acquire the remaining 40%
  • 2011: acquired 100% of CONTEMPORARY plc
  • 2011: acquired Blueprint Management Systems
  • 2012: acquired 60% of interest in Elsys
  • 2013: on 1 Nov 2013 acquired 100% of Aster Group
  • 2013: itelligence AG acquired the SAP consulting, licensing and maintenance businesses from Software AG
  • 2014: on 1 October 2014 acquired Symphony Management Consulting

Copyright·©2014 ·Eurotechnology Japan KK·All Rights Reserved·

Integralis acquired by NTT Communications creating NTT Com Security AG

NTT eurotechnology.com

NTT Communications acquired 78.4% of Integralis AG which is renamed NTT Com Security AG

Managed Security Services (MSS): Greschitz IT Security and Secode AB join NTT Com Security AG

On June 30, 2009, NTT Communications announced a public tender offer for the shares of Integralis AG offering € 6.75 in cash per share. Integralis at that point was traded on the Frankfurt Stock Exchange (Xetra).

In October NTT Communications acquired 78.4% of Integralis AG at a cost of € 59.1 million, to offer managed security services.

Integralis AG

The company was founded on 19 July 1993 as “Articon Fertigungsleitsysteme GmbH”, Articon Information Systems AG had IPO on the German Neuer Markt in 1998.

Integralis Ltd was founded in 1989.

On 29 February 2000, Articon Fertigungsleitsysteme GmbH and Integralis Ltd merged, and the resulting company was Articon-Integralis AG.

Integralis renamed NTT Com Security AG

On 24 June 2013, Integralis AG was renamed NTT Com Security AG.

NTT Com Security AG

NTT Com Security AG is a listed company, and the company’s shares are traded in the m:access segment of the open market of the Munich Stock Exchange. There are 13,036,844 outstanding shares.

Share holding (according to NTT Com Security AG website):

  • 78.30% NTT Communications Corporation
  • 2.31% treasury stock
  • 19.39% free float

NTT Com Security AG / Integralis acquires Austrian Greschitz IT Security

Thomas Greschitz founded Greschitz IT Security 1995 to focus on internet security, in particular Check Point firewall systems in Graz. 2000 the company moved from Graz to Vienna.

2007 Thomas Greschitz founded the company Greschitz Management GmbH.

2008 Thomas Greschitz sells Greschitz IT Security to Integralis AG.

2010 Thomas Greschitz leaves Greschitz IT Security to focus fully on Greschitz Management GmbH.

NTT Com Security AG acquires Swedish Secode AB

On August 11, 2010, NTT Communications Corporation announced the acquisition of all shares of Secode AB, a managed security services (MSS) provider operating in the Nordic countries. Secode AB’s security operation centers (SOCs) were folded into NTT Communications network of SOCs.

On December 1, 2011, NTT Communications transferred the shareholding in Secode AB to Integralis AG (today’s NTT Com Security AG), making Secode AB a fully owned subsidiary or Integralis AG (Today NTT Com Security AG).

Secode AB become part of NTT Com Security AG.

Copyright·©2014 ·Eurotechnology Japan KK·All Rights Reserved·

net mobile AG majority stake acquired by NTT Docomo

NTT Docomo

globalizing Docomo’s mobile payment and content services

bringing German mobile know-how to Japan

On September 11, 2009, NTT Docomo announced a voluntary public tender offer for shares of net mobile AG. The tender offer was closed on November 27, 2009, and Docomo Deutschland GmbH acquired 6,126,567 shares at € 6.35 per share corresponding to 79.59% of the company, at a total acquisition cost of € 38.9 million, thus valuing net mobile AG at € 48.9 million.

Acquisition of Bankverein Werther AG to create Net-m Privatbank 1891 AG

On September 22, 2011, NTT Docomo announced the additional investment of up to € 28.4 million (YEN 3.1 billion) in net mobile AG, for the purpose of net mobile AG acquiring Bankverein Werther AG.

The company goes back to the foundation of the financial cooperative “Vorschussverein zu Werther”, which was founded in 1877 in Werther, near Bielefeld in Germany. In 1891, the Vorschussverein zu Werther was transformed into the bank “Bankverein Werther Aktiengesellschaft”. During 2011, Net Mobile AG acquired 93% of shares of Bankverein Werther AG. On December 1, 2011, the traditional banking business, including the trademark “Bankverein Werther” was sold to the regional bank “Volksbank Paderborn-Höxter-Detmold eG“.

With the sale of the traditional banking business and the tradename and brand, the bank reentered the market as Net-m Privatbank 1891 AG. At the end of 2012, Net Mobile AG acquired all remaining shares, so that Net-m Privatbank 1891 AG became a 100% owned subsidiary of net mobile AG.

net mobile AG

net mobile AG was founded on 9 October 2000 in Köln, and headquarters later the same year moved to Düsseldorf (Handelsregister/trade registry No. HRB 48022). In 2001, Net Mobile AG acquired SMS Infowelt. net mobile AG’s business at that time was marking info-SMS, ringing tunes, and other information services for mobile phones.

net mobile AG is a public company, traded at the Frankfurt and München Stock Exchanges (Freiverkehr).

Currently the market cap of net mobile AG is € 77 million (US$ 94 million).

Share ownership (according to the net-mobile website):

  • 87,13 % DOCOMO Deutschland GmbH, a 100& subsidiary of NTT Docomo Inc.
  • 12,87% traded on the Frankfurt and München stock exchanges

net mobile AG subsidiaries

Copyright (c) 2014 Eurotechnology Japan KK All Rights Reserved

Idemitsu Kosan may acquire Showa Shell Sekiyu KK for YEN 500 billion (US$ 4.1 billion)

SHELL may exit Japan after 138 years here

Idemitsu Kosan (出光興産株式会社) aims for market leadership

On December 20, 2014, both Idemitsu Kosan and Showa Shell separately announced that they had entered into discussions of possible business reorganization, indicating that Idemitsu Kosan may acquire Showa Shell next year. Because Showa Shell Sekiyu KK is a Japanese company traded on the Tokyo Stock Exchange, such an acquisition would be via a tender offer for outstanding shares.

With the development of fuel efficient cars and the shrinking population, refined oil products are a shrinking market in Japan, and a merger between Idemitsu Kosan and Showa Shell is a consequence of consolidation of this shrinking market.

This merger would also mean a departure of Royal Dutch Shell from the Japanese market.

Showa Shell Sekiyu KK (昭和シェル石油株式会社)

Listed on Tokyo Stock Exchange (TKS5002)
Market cap: YEN 384 billion (= US$ 3.2 billion)

Although Showa Shell Sekiyu KK (昭和シェル石油株式会社) generally uses the famous yellow and red Shell logo, Showa Shell Sekiyu KK (昭和シェル石油株式会社) is not a wholly owned subsidiary of Royal Dutch Shell plc, but its a public company traded on the Tokyo Stock Exchange (TSE5002), with a large number of shareholders beyond Royal Dutch Shell plc, which is the largest shareholder with a holding of 35.0%.

Given Royal Dutch Shell plc’s holding of 35.0%, this holding currently is worth approx. YEN 134.4 billion (US$ 1.12 billion).

35% of the reported tender offer price would correspond to YEN 175 billion (US$ 1.44 billion)

Shareholders:

  • 35.0% Royal Dutch Shell Plc
  • 14.9% Government of Saudi Arabia
  • 1.8% Nomura Asset Management Co., Ltd.
  • 0.9% Daiwa Asset Management Co. Ltd.
  • 0.9% Nikko Asset Management Co., Ltd.
  • 0.7% Grantham, Mayo, Van Otterloo & Co. LLC
  • 0.7% SEB Investment Management AB
  • 0.6% BlackRock Fund Advisors
  • 0.6% The Vanguard Group, Inc.
  • 0.6% Norges Bank Investment Management
  • 42.7% others
  • —————————————
  • 100.0% Total

related: Solar Frontier KK

Solar Frontier KK is a 100% owned subsidiary of Showa Shell Sekiyu KK, developing and manufacturing copper indium gallium selenide (CIGS) solar cells and related business, such as developing and operating solar power stations using CIGS cells.

Revenues and market shares in Japan’s oil/gasoline markets

With a merger of Idemitsu and Showa-Shell, the combined company will have a firm second position with a 30% market share, very close to the market leader JX Holdings with 34% market share.

History of Shell and Showa Shell Sekiyu KK (昭和シェル石油株式会社) in Japan

Showa Shell Sekiyu KK (昭和シェル石油株式会社) is the basis of the Royal Dutch Shell Group in Japan.

Showa Shell Sekiyu KK (昭和シェル石油株式会社) was formed on January 1, 1985 by the merger of Showa Oil Co Ltd and Shell Sekiyu KK. The Royal Dutch Shell Group had a shareholding in Showa Oil Co Ltd since June 1951.

Shell Sekiyu KK goes back to Samuel Samuel & Co, started by Samuel Samuel in partnership with his brother Marcus Samuel, 1st Viscount Bearstead (subsequently The Lord Bearstead and The Rt. Hon. The Viscount Bearsted Bt. – the founder of the Shell Transport and Trading Company), in Yokohama around 1876. Samuel Samuel & Co set up the Rising Sun Petroleum Co Ltd. In 1947, Rising Sun Petroleum Company was renamed Shell Sekiyu.

Shell Sekiyu and Showa Sekiyu merged in 1985 to form Showa Shell Sekiyu.

Copyright·©2014 ·Eurotechnology Japan KK·All Rights Reserved·

Toray acquires Saati SpA’s European carbon fiber fabric and prepreg business

Toray acquires Saati’s European fabric business: Toray builds integrated supply chain in Europe

Toray management program Project AP-G 2016: “thorough implementation of growth strategy through innovation and aggressive management”

Toray acquires Saati’s European fabric business: Toray announced on 10 December 2014 the agreement to acquire the European carbon fiber fabric and prepreg business of Saati SpA. Toray will take over Saati’s plant located in Legnano (Milano Province) in January 2015, renaming the operations “Composite Materials (Italy) Srl (CIT)” and to become a fully owned subsidiary of Toray.

Saati will continue to own and operate the Saati composite business in America.

Saati SpA

SAATI SpA was founded in 1935 to manufacture silk flour mesh fabrics, and employs about 850 people.

Saadi SpA operates five divisions:

  • printing: graphics, electronics, apparel, glass etc
  • chemicals: screen printing, emulsions, screen prep and reclaim materials
  • filtration
  • protection: ballistic panels, helmets etc
  • composites: carbon fabrics, glass fabrics, prepreg, UD, etc

Pre-preg

Pre-Preg are pre-impregnated composite fibers with a matrix material such as epoxy.

Toray’s medium term management program “Project AP-G 2016” (from April 2014 to March 2017)

Toray’s Project AP-G 2016 is part of Toray’s long term vision “AP-Growth TORAY 2020“, and follows “Project AP-G 2013.

Thorough implementation of growth strategy through “innovation and aggressive management”.

Key benchmarks for FY 2016:

  • Consolidated net sales: YEN 2.3 trillion (US$ 23 billion)
  • Consolidated operating income: YEN 180 billion (US$ 1.8 billion)
  • ROA 8%
  • ROE 10%

Toray’s long term vision “AP-Growth TORAY 2020“: become “a global top company of advanced materials”

AP-Growth TORAY 2020 is a unified growth map for the next 10 years based on Toray’s corporate vision of “contributing to society through the creation of new value with innovative ideas, technologies and products”.

Key KPI’s for AP-Growth TORAY 2020 (to be achieved around 2020)

  • consolidated net sales: YEN 3 trillion (US$ 30 billion)
  • Consolidated operating income: YEN 300 billion (US$ 3 billion)
  • Operating income margin: 10%
  • ROA: 10%
  • ROE: 13%

Toray Industries, Inc. (東レ株式会社) “Innovation by chemistry” (化学による革新と創造) (TSE 3402, LSE TKK)

Toray Industries, Inc. (東レ株式会社) was founded on 12 January 1926 with an investment by Mitsui Bussan. The company was incorporated as Touyou Rayon (東洋レーヨン) on 16 April 1926.

In 1970 the company name was changed to Toray KK (東レ株式会社). Toray is the abbreviation of Touyou Rayon (レーヨン).

Toray’s main business are:

  • fibers and textiles
  • plastics and chemicals
  • IT related products: films, color filters, products for IC production, graphics materials
  • carbon fiber composites
  • environment and engineering: water treatment membranes, materials for housing, environmental equipment
  • life science
  • other: analysis, research related services

Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

EU investment in Japan could be 50% higher had Vodafone succeeded in Japan

EU investment in Japan is about € 85 billion (US$ 106 billion) - it could be 50% higher had Vodafone succeeded in Japan.

EU investment in Japan is about € 85 billion – it could be 50% higher!

Vodafone-Japan: what could the value be today?

Had Vodafone succeeded in Japan, Vodafone-Japan could be worth about US$ 50 billion today, about 1/2 of Vodafone’s total global market-cap today, and combined investment in Japan by European (EU) companies could be about 50% higher than it is today!

With COLT about to acquire KVH, it might seem that this is the only foreign infrastructure based telecom provider left in Japan’s telecom market after a long string of management failures, including Vodafone, Cable & Wireless, Willcom, WorldCom and others.

However, foreign investment in Japan’s telco/cloud infrastructure has not ended, and we believe the next wave including AWS, Microsoft, Google et al may become far more successful than the first wave.

For companies considering investment or business expansion in Japan, it is useful to understand the potential market-capitalization which can be achieved in Japan in case of success, instead of just looking at the sales figures:

  • as an example, combined EU investment in Japan is estimated to be approx. € 85 billion (US$ 106 billion) in total,
  • had Vodafone succeeded in Japan, total investment in Japan by European (EU) companies would be about 50% higher than it is today.

Why Vodafone-Japan could be worth US$ 50 billion (1/2 of Vodafone’s global market cap) had it been successful

Let us estimate what Vodafone-Japan could be worth today, had it not failed:

Since Vodafone-Japan’s sale to SoftBank on March 17, 2006, Japan’s telecom market has continuously grown, so we can expect today’s valuations to be considerably higher than in 2006. Lets assume that Vodafone-Japan had been successful, and had grown in sync with competitors NTT-Docomo and KDDI, and lets assume that Vodafone-Japan would have been able to continue J-Phone’s innovations to keep subscription figures and financial results in sync with KDDI. In this case, it would not be unreasonable to assume that Vodafone-Japan’s market capitalization today would be KDDI’s minus the value of KDDI’s global data-center business. Thus we arrive at an estimate, that Vodafone-Japan would have a market-cap value on the order of US$ 50 billion today.

US$ 50 billion is about 50% of Vodafone’s total global valuation, and about 50% of the sum of all direct investments in Japan by all European (EU) companies combined.

Thus, had Vodafone been successful in Japan, EU investments in Japan could be about 50% higher than they are today, and Vodafone’s global market cap could be 50% higher as well.

Market capitalization (Dec 2, 2014):

  • NTT Group: US$ 61 billion
  • NTT-Docomo: US$ 68 billion
  • KDDI: US$ 58 billion
  • SoftBank: US$ 80 billion
  • Vodafone plc (global group): US$ 97 billion
  • Vodafone-Japan market cap, had it been successful (our estimate): US$ 50 billion corresponding to approx. 50% of Vodafone’s global market cap)
  • total investment in Japan by all European (EU) companies combined: € 85 billion (= US$ 106 billion)
    (see: EU-Japan direct investment register)
EU investment in Japan is about € 85 billion - it could be 50% higher!
EU investment in Japan is about € 85 billion – it could be 50% higher!

Japan telecommunications industry market report

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Colt to acquire KVH – the Tokyo based cloud and data center service provider

Colt acquires Tokyo based KVH cloud and data center services provider for US$ 162 million to expand in Japan and Asia-Pacific's growing cloud markets

Colt to acquire KVH for YEN 18.595 billion (€ 130.3 million = US$ 160 million)

The acquisition

Both Colt and KVH were founded with investments by Fidelity Investments and associated companies, Colt in London in 1992, and KVH in 1999 in Tokyo, as telecommunications service providers for the financial industry and other industrial customers. While KVH remained 100% owned by Fidelity and associated companies, Colt was listed on the London Stock Exchange in 1996.

Initially founded as telecommunications companies, both Colt and KVH have developed into “information delivery platforms” based on networking infrastructure, data centers, optical fibre networks and associated management and information services.

On November 12, 2014, Colt announced the plan to acquire KVH for YEN 18.595 billion (€ 130.3 million = US$ 160 million) in cash from KVH’s owner Fidelity Investments.

Since KVH is 100% owned by Fidelity Investments, and Colt have also been founded by Fidelity which is still a shareholder, the acquisition needs to be approved by independent Directors and by independent shareholders of Colt.

A General Meeting of Colt’s shareholder has been announced for December 16, 2014 at 10:00am in Luxembourg where the approval of shareholders of Colt will be sought.

Colt – the “information delivery platform”

Colt was founded by James P Hynes (Jim Hynes) with investments from Fidelity Investments and related companies in 1992 in London, and went public with an IPO on London Stock Exchange in 1996.

Colt operates 20 data centers and substantial optical fiber networks, and has more than 5000 employees.

Colt’s annual revenues are € 1,575.8 million (= US$ 2 billion) in 2013.

Colt market capitalization currently is UKL 1.19 billion (= US$ 1.9 billion).

KVH – “Asia’s information delivery platform”

KVH was founded by Fidelity Investments and related companies on April 2, 1999 in Tokyo.

KVH operates 9 Data Centers, owns optical fiber networks in Japan and to major financial centers in the world, and has about 590 employees.

KVH annual revenues are approx. € 133.6 million (= US$ 170 million) in FY2013, i.e. Colt is about 10 times bigger in terms of market cap and sales than KVH.

KVH owns optical fibre, ethernet, data center data infrastructure in Tokyo, Osaka and other parts of Asia.
KVH owns optical fibre, ethernet, data center data infrastructure in Tokyo, Osaka and other parts of Asia. This photograph shows KVH owned cable infrastructure in the center of Tokyo

The planned acquisition values KVH at YEN 18.595 billion (€ 130.3 million = US$ 160 million), i.e. COLT is about 12 times bigger than KVH in terms of market capitalization/value.

Implications of acquisition of KVH by Colt – view as a Japan (and Asia) market entry by Colt

From the point of view of Colt, the acquisition of KVH – which has always been a sister company via the common investor Fidelity Investments, and common founder Jim Hynes – is a relatively low risk market entry into Japan and several other major Asian markets, and promises to have a very high chance of success for all parties.

We need to keep in mind, that essentially all other large scale market entries into Japan by infrastructure based telecommunication operators have failed: Vodafone, Cable & Wireless, WorldCom’s market entries into Japan’s telecom markets have all failed, and to our knowledge KVH is the only remaining internationally owned telecom infrastructure company in Japan today.

You can read a detailed discussion about why Vodafone failed in Japan in our blog here “Vodafone Japan could have been a business worth US$ 50 billion today. Why did Vodafone Japan fail and sell to SoftBank?”.

Essentially, both Vodafone and Cable & Wireless failed in Japan’s telecom markets, because they did not have the multitude of skills and know-how needed to manage a telecommunications business in Japan in a competitive manner. Colt with the acquisition of KVH acquires this know-how, and KVH at the same time has been an internationally managed company from the outset, so that Colt avoids the risks of acquiring a 100% Japanese companies such as Vodafone had done by acquiring Japan Telecom, with all the cultural issues that this entails.

At the same time, we also need to keep the scale in mind. While KVH has a market capitalization (i.e. the purchase price) of US$ 160 million, it can be argued that Vodafone-Japan could be expected to have a capitalization of around US$ 60 billion today had it been successful – i.e. about 375 times larger than KVH.

Japan’s largest telecommunication operator NTT currently has a market capitalization of US$ 62 billion, i.e. about 390 times larger than KVH, while SoftBank’s market capitalization is about 500 times larger than KVH’s.

Thus, if we see Colt’s acquisition of KVH as a market entry into Japan by a European telecom operator, then this is on an approx. 300-400 times smaller scale than Vodafone’s failed market entry into Japan, and with far better circumstances, and a far higher chance of success, and in our view with very carefully controlled risks.

Without doubt, a merger of KVH with Colt was on the minds of Fidelity Investments and Jim Hynes, when they founded both KVH and Colt in the 1990s.

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Hitachi Zosen Inova AG acquires Energy-from-Waste (EfW) EPC Axpo Kompogas Engineering AG (Komeng)

Hitachi

Waste is our Energy! – Energy-from-Waste (EfW)

Hitachi Zosen Inova AG acquires Axpo Kompogas Engineering AG

AXPO agreed on October 24, 2014 to sell its subsidiary Axpo Kompogas Engineering AG to Hitachi Zosen Inova AG (ZHI AG). Closing is in mid December 2014.

Axpo Kompogas Engineering AG (Komeng)

Axpo Kompogas Engineering AG (Komeng) is an EPC (engineering, planning, construction) company planning and constructing dry fermentation plants using the Kompogas process, which produces biogas and compost from biomass via a dry fermentation process.

Address: Flughofstrasse 54, CH-8152 Glattbrugg, Switzerland
CEO: Bernard C. Fenner
Business: EPC (engineering, procurement, construction) and maintenance of Kompogas plants
Established: 2013
Capital: approximately SFR 3.6 million (YEN 425 million)

Kompogas method generates biogas by methane fermentation from kitchen and other organic waste

The Kompogas process was developed about 1988-1989 by the Swiss entrepreneur Walter Schmid initially on his private balcony.

The Kompogas process produces biogas and compost from biological, organic waste via a fermentation process. The resulting biogas can be used for cars and trucks, and the compost as organic fertilizer.

AXPO is an electricity operator, generating, distributing, selling and trading electricity, and is fully owned by cantons of north-eastern Switzerland.

Hitachi Zosen Inova AG (ZHI AG), which became a subsidiary of Japan’s Hitachi Zosen Corporation (日立造船株式会社) with the acquisition of the bankrupt AE&E Inova Holding AG on December 20, 2010, acquires Axpo Kompogas Engineering AG, as of Nov. 5, 2014.

Hitachi Zosen Inova AG (HZI AG) history

Hitachi Zosen Inova AG (HZI AG) was created when Hitachi Zosen acquired AE&E Inova Holding AG on December 20, 2010, after it filed for bankruptcy in Zurich on December 3, 2010, read details here.

AE&E Inova Holding AG goes back to a department for thermal waste management of the Gesellschaft der Ludwig von Roll’schen Eisenwerke which was founded in 1823.

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JFE Engineering acquires boiler maker Standardkessel Power Systems Holding GmbH

JFE Engineering globalizes and strengthens biomass and waste electricity generation systems business

Standardkessel-Baumgarte: from a classic boiler maker to biomass and waste-to-energy power plants

JFE Engineering acquires all outstanding shares of Standardkessel Power Systems Holding GmbH, for approximately YEN 10 billion (US$ 87 million), from current shareholders.

Standardkessel (founded 1925) and Baumgarte (founded 1935) started as classic boilermakers, and today supply turnkey power plants and power plant components for fossil energy sources, e.g coal, gas and oil, and also for alternative energy carriers, e.g. biomass, municipal waste, and industrial waste.

Standardkessel Power Systems Holding GmbH is a holding company owning 100% of the shares in the Standardkessel Baumgarte Group, which consists of:

  • Standardkessel GmbH (founded 1925)
  • Baumgarte GmbH (founded 1935)
  • Standardkessel Baumgarte Service Holding GmbH (founded 2008)

Standardkessel-Baumgarte were founded as classic boiler makers, and developed into makers of biomass and waste-to-energy power plant suppliers and service group.

By acquiring Standardkessel-Baumgarte, JFE Engineering can strengthen overseas business, accelerate globalization and move into the biomass and waste-to-energy electricity and power generation sector.

Copyright·©2014 ·Eurotechnology Japan KK·All Rights Reserved·

Heraeus Kulzer acquires EGS Srl (Enhanced Geometry Solutions)

Japanese companies’ strategy to overcome cultural post-merger problems: European subsidiaries acquire

Heraeus Kulzer acquires EGS, expanding both Mitsui Chemicals’ foot print in Europe and global market penetration for Mitsui Chemicals’ dental supplies business

Japanese companies are well known to have substantial difficulties with post merger integration as a consequence of massive cultural differences which need to be overcome for successful acquisitions. One way to mitigate these difficulties is for Japanese companies to acquire a substantial European company, make this acquisition a success, and then acquire additional companies via this first successfully integrated subsidiary. One example for this path is Dentsu with its Aegis acquisition, see: Dentsu acquires Aegis. Subsequently, Aegis acquires a string of companies all over Europe for Dentsu.

Mitsui Chemicals follows a similar strategy by first acquiring Heraeus Kulzer, which then again acquires the CAD/CAM specialist Enhanced Geometry Solutions, EGS Srl.

Enhanced Geometry Solutions, EGS Srl, makes 3D scanners, CAD software, and digital tools for scanning, modeling, designing workflow in dental laboratories.

Copyright (c) 2016-2017 Eurotechnology Japan KK All Rights Reserved

Panasonic self-driving car technology: Ficosa investment

Panasonic

Panasonic restructures away from TVs and other commodities to automotive parts

Panasonic self-driving car technology

As part of the restructuring efforts, Panasonic invests in Spanish car parts maker Ficosa in order to jointly develop Panasonic self-driving car technology.

We have documented in our blogs and reports on Japan’s electronics industry how Japan’s electronics giants lost their global dominating advantages as TVs and other electronics products became commodities, and Japanese electronics makers were blind sided by Apple, Samsung and many other faster innovators. Japanese electronics companies including Panasonic were slow to recognize that their market leading positions were rapidly melting away, and were slow to change.

As part of the restructuring efforts, Panasonic sold several semiconductor fabs to Tower-Jazz, and in a move into car parts, Panasonic invests about US$ 275 million to acquire an approximately 50% stake in the Barcelona based Spanish car parts maker Ficosa International, in order to jointly develop self-driving car technology.

Ficosa had acquired the Sony Barcelona Technology Center

Interestingly, Ficosa had previously in 2010 acquired “SONY Barcelona Tec” SONY Barcelona Technology Center located at Viladecavalls near Barcelona partly alone, and partly in a joint-venture with the infrastructure company Comsa Emte SL.

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Nokia to buy Panasonic’s mobile phone base station division

Panasonic

Nokia to acquire Panasonic System Networks

Nokia to expand market share in Japan, Panasonic to focus on core business

Panasonic, after years of weak financial performance, is focusing on core business. Nikkei reports that Panasonic is planning to sell the base station division, Panasonic System Networks, to Nokia.

Nokia expands No. 1 position in Japan

Our analysis of Japan’s mobile phone base station market shows, that Nokia became No. 1 in Japan’s base station market with the acquisition of Motorola’s base station division. Acquisition of Panasonic System Networks will expand Nokia’s NSN to expand market leadership in Japan’s mobile phone base station market.

Panasonic System Networks

Panasonic System Network’s market share is estimated at around 10% of Japan’s mobile phone base station market, while international sales are essentially non-existent. Thus Panasonic System Network’s global market share is negligible, giving Panasonic little possibility for the scale necessary to operate a stable profitable longterm base station business.

Japan’s mobile phone handset makers and base station makers have for many years focused on serving Japan’s internal market only, and in particular have focused on Japan’s No. 1 mobile phone operators NTT Docomo. This gave Japan’s mobile phone base station makers a temporary home advantage, however with the value shift from hardware to software, they lack scale, and are subsequently uncompetitive globally. More about Japan’s Galapagos effect here.

The context: EU investments in Japan

While Japanese investments in Europe are booming, recently European investments in Japan have been stagnating after Vodafone’s withdrawal from Japan, and there are very few new European investments in Japan. Could it be that Nokia’s investment in Japan starts a new trend of renewed European investments in Japan?

Japan telecommunications industry market report

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Yaskawa acquires The Switch Engineering Oy, manufacturer of generators for wind power

The Switch Engineering Oy was valued US$ 265 million in 2011

Trend: Japanese companies acquire European renewable energy technology companies

On July 2, 2014 Yaskawa Electric Corporation acquired all shares of The Switch Engineering Oy, which are not owned by the Switch. The acquisition price was not announced, however, AMSC in 2011 had agreed and later cancelled to acquire The Switch for US$ 265 million. Therefore we can expect the acquisition price to be at least of this order if not much higher.

Vacon plc held approx. 14% of The Switch directly and another approx. 5% through the investment fund Power Fund I. On July 1, 2014, Vacon plc sold all these shares to Yaskawa Electric Corporation.

Finnish Industry Investment sold a holding of The Switch to Yaskawa.

The Switch Engineering Oy “Bringing you power”

The Switch Engineering Oy makes permanent magnet generators (PMG) and full-power converters (FPC) for wind turbines (1 MW – 8 MW and higher), marine applications and other industrial applications.

The Switch was founded in 1996, and in 2013 reported sales of € 46.2 million (US$ 53 million), and employed 175 people. The Switch headquarters are in Vantaa, Finland.

The Switch Engineering Oy was valued US$ 265 million in 2011

On March 14, 2011, American Superconductor Corporation AMSC signed a definitive agreement to acquire The Switch for US$ 265 million. However, on October 31, 2011, AMSC announced the cancellation of this agreed acquisition and paid € 14.2 million as break-up fee, a sum which had already been paid as an advanced payment of the acquisition price.

Yaskawa Electric Corporation (株式会社 安川電機)

Yaskawa Electric Corporation was founded on July 16, 1915, and headquarters are in Kitakyushu in the West of Japan.

Sales by business segment (FY2014: Fiscal year ended March 2015)

  • Motion control: YEN 188.1 billion (US$ 1.571) 47%
  • Robotics: YEN 136.0 billion (US$ 1.136 billion) 34%
  • System Engineering: YEN 41.0 billion (US$ 0.342 billion) 10%
  • Other: YEN 35.1 billion (US$ 0.293 billion) 9%
  • Total: YEN 400.153 billion (US$ 3.3 billion) 100%

Copyright·©2014-2015 ·Eurotechnology Japan KK·All Rights Reserved·

Toshiba acquires 60% of NuGeneration Ltd

Toshiba

Toshiba acquiring an additional 10% of NuGeneration

NuGeneration becomes a joint-venture between Toshiba (60%) and GDF Suez (40%)

In December 2013, Toshiba purchased 50% of NuGeneration Ltd from Iberdrola (of Spain) for UKL 85 million (US$ 146 million).

On June 30, 2014, Toshiba announced to purchase an additional 10% of NuGeneration Ltd from GDF Suez.

Thus, NuGeneration becomes a joint-venture between Toshiba (owning 60% of NuGeneration) and GDF Suez (owning 40% of NuGeneration).

NuGeneration Ltd (NuGen)

NuGeneration Ltd. (NuGen) owns an option to purchase the 190 hectare Moorside site, located to the north of Sellafield, from the UK Nuclear Decommissioning Agency.

NuGeneration plans to build a 3.4 GigaWatt nuclear power station using three AP1000 reactors built by Westinghouse. Westinghouse is owned by Toshiba (87%), by Kazakhstan based Uranium and nuclear fuel producer KazAtomProm (10%) and the Japanese engineering company IHI (3%).

When finished, NuGeneration’s Moorside nuclear power plant is expected to deliver about 7% of UK’s electricity.

Two factors drive Toshiba to acquire a majority holding of NuGeneration (NuGen):

  1. the great uncertainty of the future of nuclear power in Japan following the Fukushima nuclear accident
  2. Toshiba’s commitment to nuclear power – and dependence on nuclear power construction following the acquisition of the majority of Westinghouse

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CSC Media Group (of UK) acquired by SONY for 107 million pounds

CSC Media Group acquired by SONY for 107 mill pounds, bringing 16 cable and satellite channels to SONY

CSC Media Group of UK (formerly Chart Show Channels) owns 19 cable and satellite channels acquired by SONY

CSC Media Group acquisition for UKL 107 million

On June 26, 2014 SONY announced the acquisition of the CSC Media Group of UK for a total of 107 million pounds from the major shareholder Veronis Suhler Stevenson.

CSC Media Group owns and operates 16 satellite and cable channels in the UK.

With this acquisition SONY owns 25 TV channels in Great Britain, and about 64 channels globally.

We believe that with this acquisition SONY aims to strengthen the profitability of content distribution to accompany the restructuring of SONY’s loss making electronics division, which includes the production of TV sets.

Copyright·©2014 ·Eurotechnology Japan KK·All Rights Reserved·

Nippon Steel & Sumikin Engineering Co., Ltd. acquires Fisia Babcock Environment GmbH

Nippon Steel & Sumikin Engineering Co Ltd (Nippon Steel & Sumitomo Metal Corporation, Tokyo Stock Exchange Code 5401) on May 7, 2004 acquired 100% of the shares of Fisia Babcock Environment GmbH (located in Gummersbach, Germany) from Impregilo International Infrastructure N. V. (which is wholly owned by Salini Impregilo S.p.A., Milano, Italy), for EURO 139.3 million.

Copyright·©2014 ·Eurotechnology Japan KK·All Rights Reserved·

DC Storm acquired by Rakuten Marketing to strengthen marketing analytics and attribution

Rakuten

Rakuten acquires marketing attribution specialist

Following acquisition of Adometry by Google and of Convertro by AOL

On May 28, 2014, Rakuten Marketing announced the acquisition of the Brighton (UK) based marketing attribution specialist DC Storm.

Although terms of the acquisition were not disclosed, Google on May 6, 2014 acquired Adometry for about US$ 150 million, and AOL on the same day acquired Convertro for US$ 101 million. Therefore we assume that Rakuten Marketing probably also paid on the order of US$ 100 million for DC Storm.

Marketing attribution: measuring return (ROI) on marketing investment

Marketing attribution has its origin in the work of Austrian psychologist Fritz Heider‘s work on Attribution Theory, and his seminal work “The Psychology of Interpersonal Relations” of 1958.

Attribution is the process by which people explain the causes for actions, and models for these processes (source: Wikipedia).

Marketing attribution develops understanding of which combination of events leads individuals to take particular actions, e.g. to conclude a purchase for example (source: Wikipedia Attribution (marketing))

Marketing attribution specialist companies have recently been very popular acquisition targets:

  • Convertro (about 60 employees) acquired by AOL for US$ 101 million, announced on May 6, 2014
  • Adometry (about 130 employees) acquired by Google for an estimated US$ 150 million, announced on May 6, 2014
  • DC Storm acquired by Rakuten Marketing, announced on May 28, 2014
  • Visual IQ ? (about 190 employees)
  • C3 Metrics
  • DataSong
  • Encore Metrics

DC Storm

DC Storm is headquartered at Brighton, UK, with offices in US and in Germany. DC Storm was founded in 2004 by current CEO, Seth Richardson, who designed and coded the initial versions of DC Storm’s digital marketing analysis platform.

DC Storm offers digital marketing companies attribution tools, analysis and consulting services, and tag management.

Copyright (c) 2014-2015 Eurotechnology Japan KK All Rights Reserved

Horizon2020 Japan conference at the EU Delegation in Tokyo

European Union EU Horizon 2020

Horizon 2020 Japan conference encourages Japan participation in this R&D and innovation program of the EU

Horizon 2020 Japan: Ambassador Hans Dietmar Schweisgut, welcome

Ambassador Hans Dietmar Schweisgut
Ambassador Hans Dietmar Schweisgut

Horizon 2020 Japan – Yoichiro Matsumoto: Japan’s research needs to go global

(Professor Yoichiro Matsumoto, Executive Vice President, The University of Tokyo)

Professor Yoichiro Matumoto, Executive Vice President, The University of Tokyo
Professor Yoichiro Matumoto, Executive Vice President, The University of Tokyo

Recent situation in Japanese Universities

Japan has shown a lower growth in the publication of papers compared to other countries

Quantity: growth rate of number of papers for the period 2009-2011 compared to 1999-2001:

  • China: +360% growth
  • USA: +28% growth
  • Germany: +28% growth
  • UK: +21% growth
  • France: +28% growth
  • Japan: +3% growth
  • World: +48% growth

Quality: top 10% of papers during the period 2009-2011 compared to 1999-2001:

  • China: +521% growth
  • USA: +26% growth
  • Germany: +68% growth
  • UK: +57% growth
  • France: +61% growth
  • Japan: +16% growth
  • World: +51% growth

Quality: top 1% of papers during the period 2009-2011 compared to 1999-2001:

  • China: +692% growth
  • USA: +28% growth
  • Germany: +99% growth
  • UK: +79% growth
  • France: +99% growth
  • Japan: +39% growth
  • World: +51% growth

Budget:

  • Japanese Universities have suffered a long term budget cut for ordinary operations lasting more than 10 years
  • the ratio of competitive funds have increased rapidly
  • we must change ourselves towards strategic thinking and planning for research, its funding and sustainability

The Science and Technology budget in Japan has been increasing rapidly until 2002, but is stagnating since 2002.

Why is international cooperation in research important

scientific output has grown rapidly and collaboration between institutions in different countries has intensified.
International collaboration papers are likely to get more citation impact.

The challenges facing Japanese research institutions – strategic competition and collaboration

  • we need strategic competition and collaboration among Japanese research institutions for the management to increase their reputation and visibility globally
  • each institution must be more competitive in human and institutional resources, research funds, facilities, student quality, educational performance, global openness, clear vision, efficiency of management…
  • unders those severe and open competition, we can make win-win relations among institutions
  • we need a long-term and bird-view thinking to enhance the sustainability of research and eduction activities in the institution
  • we need global collaboration
  • create sustainable environment for research institutions: secure enough domestic funds for research, get international R&D funds like Horizon2020, enhance the mobility of research
  • boost international exchanges between European institutions and Japanese institutions
  • create network of networks between institutions to discuss our common problems and enhance our activity of research and education

The Royal Society 2011: “collaboration enhances the quality of research, improves its efficiency and effectiveness, and is increasingly necessary as the scale of budgets and research challenges grow”

Horizon 2020 Japan – Anders Karlsson: EU-Japan Science collaboration – a “bird’s eye view” on publication patterns & opportunities for collaboration

(Professor Anders Karlsson, Vice President for Global Academic Relations, Elsevier, Tokyo)

Professor Anders Karlsson,, Vice President for Global Academic Relations, Elsevier, Tokyo
Professor Anders Karlsson,, Vice President for Global Academic Relations, Elsevier, Tokyo

Compound annual growth rate of scientific publications 2009-2013:

  • EU28: +4.9% growth
  • USA: +4.5% growth
  • China: +10.5% growth
  • Korea: +9.5% growth
  • Japan: +1.1% growth
  • world: +4.4% growth

What about the top 10% most cited publications?

  • China overtook Japan for all articles: in 2003/2004
  • China overtook Japan for top 10% articles: in 2006
  • China overtook Japan for top 10% articles in Engineering: in 2003
  • China overtook Japan for top 10% articles in Medicine: in 2010

Horizon 2020 Japan – Maria Cristina Russo: Horizon2020 – the chance to go global

(Maria Cristina Russo, Director for International Cooperation, Directorate-General for Research and Innovation, European Commission)

Maria Cristina Russo, Director for International Cooperation, Directorate-General for Research and Innovation, European Commission
Maria Cristina Russo, Director for International Cooperation, Directorate-General for Research and Innovation, European Commission

Why go global? Why collaborate internationally?

  • all science has become global
  • value chains are internationalized: making alliances, sharing costs, accessing markets, agreeing standards
  • need to address global society challenges together
  • importance for the best EU researchers to cooperate with the best Japanese researchers
  • opportunities for Japanese researchers to participate, and to access big projects with important partners from EU and the world by only paying your researchers
  • importance of building networks: deep relationships with EU and world actors through R&D collaboration

Why chose the EU to “go global”?
500 million people, 28 countries, a single market = free movement of people + goods + services + capital

  • 7% of the world’s population
  • 24% of world research expenditure
  • 32% of high impact publications
  • 32% of patent applications

Some excellent successes:

  • 109 “bottom up” participations by 50 different Japan based organizations in 79 FP7 projects
  • 5 “top down” jointly designed “coordinated calls” resulting in an additional 17 projects (ICT, aeronautics, energy, critical raw materials)
  • successful “support actions”, e.g. CONCERT-JAPAN

Top down coordinated calls:

  • top down: joint identification of key priority areas by EU and Japanese authorities
  • parallel call procedure, parallel evaluation, separate funding – but joint work and joint results
  • worked particularly well in Japan: 5 calls 2011-2013, 17 projects jointly financed, 2 more calls launched or in the pipeline

Unfulfilled potential – participation in EU projects – EU-Japan projects lower than Egypt or Marocco….

  1. Russia: 495
  2. USA: 476
  3. China: 321
  4. India: 253
  5. South America: 222
  6. Brazil: 206
  7. Ukraina: 185
  8. Canada: 181
  9. Australia: 177
  10. Mexico: 110
  11. Marocco: 110
  12. Japan: 109
  13. Egypt: 108
  14. Argentina: 99
  15. Korea: 65

Some key questions:

  • why is overall Japanese participation in EU research programs so modest compared with key international partners?
  • what can be done to improve participation of Japanese research entities (public and private) in the future?
  • what are the bottlenecks and obstacles?
  • what are the best approaches? top down? or bottom up?

Horizon2002: a paradigm shift

  • Globally the biggest research and innovation funding program: over EURO 80 billion budget over 7 years
  • The only part of the EU budget to increase (+30% over the previous program)
  • the most open program in the world, international cooperation at its core
  • challenge based approach, multi sector activities to address global society challenges
  • stressing innovation: from lab to market
  • faster, simpler, less red tape

Three ways to participate:

  1. General opening: any international partner may participate
  2. Targeted opening: in specific topics in calls for proposals including of international partners may be: (a) encouraged, (b) required
  3. Coordinated calls: used for specific actions, paired calls, linked evaluations, two separate contracts

How to get involved?

  1. find a relevant call
  2. find partners
  3. submit a proposal
  4. get involved!
Maria Cristina Russo, Director, International Cooperation, Directorate-General for Research & Innovation, European Commission
Maria Cristina Russo, Director, International Cooperation, Directorate-General for Research & Innovation, European Commission

Horizon 2020 Japan – Kazushi Watanabe: Experience of international collaboration. FP7 project: Surface heat exchangers for aero-engines

(Kazushi Watanabe, General Manager, Business Development, Sumitomo Precision Products, Aerospace & Defense)

EU-Japan collaboration project: Advanced Structural Surface Cooler (ASSC), a component for turbines.

EU funded the research at INEGI (Instituto de Engenharia Mecanica Gestao), Rolls-Royce, GKN Aerospace Sweden AB, SICOMP (Swerea Sicomp AB)
METI funded research at Sumitomo Precision Products (SPP), and SPP subcontracted part of the research to the University of Tokyo

In addition there is a Research agreement between Rolls-Royce and SPP

One attraction of this research project for SPP is that there are not many turbine manufacturers in Japan, and this research project opened new markets for SPP products.

Kazushi Watanabe, General Manager, Business Development, Sumitomo Precision Products, Aerospace & Defense
Kazushi Watanabe, General Manager, Business Development, Sumitomo Precision Products, Aerospace & Defense

Naoto Kobayashi: FP7 project and internationalization of research at Waseda University

(Naoto Kobayashi, Center for Research Strategy, Waseda University)

FP7 projects at Waseda University:

  • Capsil Project (April 1, 2008 – March 31, 2010)

    • International support of a common awareness and knowledge platform for studying and enabling living
    • Professor Shuji Hashimoto (Faculty of Science and Engineering), 理工学術院 橋本周司教授
    • Total budget: EURO 587,150
  • RoboSoM Project (December 1, 2009 – May 31, 2013)

    • A Robotic Sense of Movement
    • Professor Atsuo Takanishi (Faculty of Science and Engineering), 理工学術院 高西淳夫教授
    • Total budget: EURO 1,659,000
  • GR:EEN Project (March 1, 2011 – February 28, 2015)

    • Global Re-ordering: Evolution through European Networks
    • Professor Shujiro Urata (Faculty of International Research and Education), 国際学術院 浦田秀次郎教授
    • Total budget: EURO 7,944,718
Professor Naoto Kobayashi, Center for Research Strategy, Waseda University
Professor Naoto Kobayashi, Center for Research Strategy, Waseda University

Yoichi Iida, Japan-EU cooperation in civil aeronautics industry

(Yoichi Iida, Director, Aerospace and Defense Industry Division, Manufacturing Industries Bureau, METI)

Yoichi Iida, Director, Aerospace and Defense Industry Division, Manufacturing Industries Bureau, METI
Yoichi Iida, Director, Aerospace and Defense Industry Division, Manufacturing Industries Bureau, METI

Agreement between the Government of Japan and the European Community on Cooperation in Science and Technology.

2012-2013:
1st Working Group
SUNJET, concluded in October 2012
Call 5 Projects: SHEFAE, JEDI ACE and HIKARI to concluded early 2016

March 2014: 2nd working group: discussion on next cooperation projects

from 2015:
Working Group
NEXT Projects (Horizon2020)
Future Projects (support action)

Lessons learnt from FP7:

  • Complicated framework of agreements: IP treatment between Japanese companies and European Commission, dispute settlement process
  • different timing of budgets

For Horizon2020 the structure of cooperation projects will be:

  1. Grant agreement between the Japanese Government and Japanese participants
  2. Grant agreement between the European Commission and European participants
  3. Coordination agreement between Japanese participants and European participants

Horizon 2020 Japan – Satoru Ohtake: closing remarks

(Satoru Ohtake, Senior Executive Director, Science and Technology Agency)

Satoru Ohtake, Senior Executive Director, Science and Technology Agency
Satoru Ohtake, Senior Executive Director, Science and Technology Agency

Copyright·©2014 ·Eurotechnology Japan KK·All Rights Reserved·

Hitachi Engineering Europe formed by acquisition of Valcom S.r.l.

Hitachi

Hitachi acquires Valcom, electrical and instrumentation engineering for oil and gas plant systems

Hitachi Engineering Europe: the new name for Valcom

Hitachi acquired all outstanding shares of Valcom S.r.l. and will rename the company “Hitachi Engineering Europe S.r.l.”

Valcom S.r.l. is an Engineering, Procurement, Construction (EPC) company, headquartered in Milano (Italy), in the following fields:

  • Oil and gas field development, electrical and instrumentation engineering business for oil and gas plant systems
  • Fossil fuel and nuclear power plants
  • Pipelines
  • Refineries and petrochemical facilities
  • Chemical and service industries
  • Airport and communications networks
  • Power transmission lines
  • Renewable energy power plants
  • Non-residential buildings (hospitals, universities, offices, etc.)
  • Floating Production, Storage and Offloading (“FPSO”) systems
  • Engineering business related to electrical equipment (transformer substation, power distribution, drive systems, and lighting equipment, etc.) needed to operate machinery, and measurement equipment (sensors, etc.) and to control plant systems

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Lesmobilizers SAS acquired by Dentsu and to be integrated into Isobar

Dentsu 電通

Dentsu acquires French mobile marketing agency Lesmobilizers

Lesmobilizers SAS to be integrated into Dentsu’s Isobar

On March 4, 2014 Dentsu announced further European investments in its quest to strengthen its global footprint: Dentsu acquires French mobile marketing agency Lesmobilizers SAS.

Lesmobilizers SAS – Mobile Applications Creators

Lesmobilizers SAS are a dedicated agency in design and development of mobile applications. The company was founded in March 2010 in Paris, France, and employees about 10 people.

In the year ending December 2012, gross profits were about EURO 0.8 million.

Dentsu and Dentsu-Aegis

Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.

A big step forward towards a larger global footprint for Dentsu was the acquisition of the London based Aegis Group, announced on July 5, 2012.

Report on Japan’s media landscape (150 pages, pdf file):
[buy][more information][preview on slideshare]

Copyright·©2009-2015 ·Eurotechnology Japan KK·All Rights Reserved·

Tokyo AIM became the Tokyo PRO market, and London Stock Exchange quits Japan. Here is why!

Tokyo AIM: LSE sells its share in the Tokyo AIM joint venture to Tokyo Stock Exchange and leaves Japan

Initially, London Stock Exchange and Tokyo Stock Exchange created Tokyo AIM as a joint-venture company in order to create a jointly owned and jointly managed Tokyo AIM, modeled according to the very successful London AIM model.

Nikkei: “Tokyo Stock Exchange has learnt enough from the London Stock Exchange to set up a similar market on its own”

However, on March 26, 2012 NIKKEI reported that “Tokyo Stock Exchange has learnt enough from the London Stock Exchange to set up a similar market on its own. TSE plans to improve the rules of its own new market, so that TSE can create a more welcoming market” (our translation of the original Japanese NIKKEI article to English).

London Stock Exchange withdrew from the venture, and Tokyo Stock Exchange took over 100% of Tokyo AIM. Essentially, London Stock Exchange AIM’s venture into Japan failed, while the stock market created by the venture continues without London Stock Exchange’s involvement. As explained in our blog here, these events are very very similar to what happened with NASDAQ about 10 years earlier!

Tokyo AIM is renamed TOKYO PRO Market and TOKYO PRO BOND Market

In 2012, the name was changed from Tokyo AIM, to TOKYO PRO Market and TOKYO PRO BOND Market. Details can be found here:

Some background about the mistakes which led to the failure of both NASDAQ and London Stock Exchange AIM to build business in Japan can be found here:

Copyright·©2014 ·Eurotechnology Japan KK·All Rights Reserved·

explido acquired by Dentsu and to be integrated into Dentsu’s iProspect brand

Dentsu 電通

Dentsu acquires German performance and search agency explido

explido to be integrated by Dentsu into iProspect brand

On February 28, 2014 Dentsu announced further European investments in its quest to strengthen its global footprint: Dentsu acquires German performance and search agency explido and integrates explido into Dentsu’s iProspect business and brand.

explido GmbH & Co KG – Agentur für digitales Marketing und Vertrieb

explido GmbH & Co KG offers digital marketing services, was founded in October 2002 in Augsburg, Germany, and employs about 135 people.

explido achieved about EURO 11.7 million gross profits annually.

Dentsu and Dentsu-Aegis

Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.

A big step forward towards a larger global footprint for Dentsu was the acquisition of the London based Aegis Group, announced on July 5, 2012.

Report on Japan’s media landscape (150 pages, pdf file):
[buy][more information][preview on slideshare]

Copyright·©2009-2015 ·Eurotechnology Japan KK·All Rights Reserved·

LIXIL and Development Bank of Japan (DBJ) together acquire 87.5% of GROHE Group

LIXIL

LIXIL (“Link to Good Living”) pursues strategy to become global leader in building materials and housing equipment industry

LIXIL acquires 87.5% of German GROHE Group (“Pure Freude an Wasser”), valuing GROHE at € 3.06 billion

Lixil Corporation follows the strategy to become the global leader in building materials and housing equipment, and on January 21, 2014, together with the Development Bank of Japan, acquired 87.5% of the German GROHE Group. The shares were acquired from Glacier Luxembourg One Sarl, which is indirectly owned by TPG Capital (formerly Texas Pacific Group) and DLJ Merchant Banking Partners (“DLJ MBP”), an affiliate of Credit Suisse and traces its roots to Donaldson, Lufkin & Jenrette.

The acquisition deal structure is quite complex. Voting rights are split 50%/50% between Lixil and Development Bank of Japan (DBJ), Lixil uses YEN 160 billion of non-recourse loans. Lixil has a call option on DBJ share ownership, allowing Lixil to acquire all of Grohe.

  • Lixil’s advisors:
    • Financial advisors: SMBC Nikko Securities, BNP Paribas, Development Bank of Japan (DBJ), Moelis
    • Legal advisors: Linklaters, Mori Hamada & Matsumoto, Nagashima Ohno & Tsunematsu
  • Grohe’s advisors:
    • Financial advisors: Acxit Capital Management, Goldman Sachs, Credit Suisse, Morgan Stanley
    • Legal advisors: Clifford Chance, Nishimura & Asahi, Weil Gotshal & Manges

Lixil Corporation

Lixil Corporation (“Link to Good Living”), TSE-Code 5938, manufactures building materials and housing equipment and operates home and home building centers. To become global leaders in these fields, LIXIL has recently acquired:

  • American Standard, in August 2013 for US$ 542 million
  • American Standard Asia Pacific, in August 2009
  • Permasteelisa Group, in 2011
  • Shanghai Meite Curtain Wall System in 2011
  • LG-TOSTEM, strategic alliance formed in 2010
  • Haier-LIXIL, strategic alliance formed in 2011

LIXIL was formed on April 1, 2011 by the merger of:

  • Tostem Corporation
  • Inax Corporation
  • Shin Nikkei Company, Ltd.
  • Toyo Exterior Co., Ltd.
  • Sun Wave Corporation

and has been growing aggressively through acquisitions with the target to achieve 50% sales internationally outside Japan.

Copyright (c) 2014 Eurotechnology Japan KK All Rights Reserved

Socializer acquired in Poland by Dentsu, joins Isobar

Dentsu 電通

Dentsu acquires Socializer acquired in Poland

Socializer joins Isobar

On January 20, 2014 Dentsu announced further European investments in its quest to strengthen its global footprint: Dentsu acquires Poland’s social media agency Socializer

Socializer SA

Socializer SA was founded in Warsaw, Poland, in March 2011, earned gross profits of UKL 1.7 million in the financial year ended December 2012, and employs about 130 people.

Socializer provider advertising and communications services using Social Media (SNS).

Dentsu and Dentsu-Aegis

Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.

A big step forward towards a larger global footprint for Dentsu was the acquisition of the London based Aegis Group, announced on July 5, 2012.

Report on Japan’s media landscape (150 pages, pdf file):
[buy][more information][preview on slideshare]

Copyright·©2009-2015 ·Eurotechnology Japan KK·All Rights Reserved·

Toshiba acquires 50% of nuclear power generator NuGeneration

Toshiba

Toshiba acquires 50% of NuGeneration for UKL 85 million

NuGeneration acquires 50% stake in NuGeneration from Spain’s Iberdola

In December 2013, Toshiba purchased 50% of NuGeneration Ltd from Iberdrola (of Spain) for UKL 85 million (US$ 146 million), making NuGeneration a 50%/50% joint venture between Toshiba and GDF Suez.

NuGeneration Ltd (NuGen)

NuGeneration Ltd. (NuGen) owns an option to purchase the 190 hectare Moorside site, located to the north of Sellafield, from the UK Nuclear Decommissioning Agency.

NuGeneration plans to build a 3.4 GigaWatt nuclear power station using three AP1000 reactors built by Westinghouse. Westinghouse is owned by Toshiba (87%), by Kazakhstan based Uranium and nuclear fuel producer KazAtomProm (10%) and the Japanese engineering company IHI (3%).

When finished, NuGeneration’s Moorside nuclear power plant is expected to deliver about 7% of UK’s electricity.

Two factors drive Toshiba to acquire a 50% share of NuGeneration (NuGen):

  1. the great uncertainty of the future of nuclear power in Japan following the Fukushima nuclear accident
  2. Toshiba’s commitment to nuclear power – and dependence on nuclear power construction following the acquisition of the majority of Westinghouse

Japanese investments in UK nuclear power generation

Toshiba’s investment in NuGeneration is the second large Japanese investment in UK nuclear power generation, following Hitachi’s acquisition of Horizon Nuclear Power from Germany’s RWE and EON Ag.

While Germany has decided to exit nuclear power with the “Energiewende”, the future of nuclear power in Japan is unclear – unlike in Germany, at the moment all Japanese nuclear power stations are switched off.

Interestingly Japanese and German companies react in opposite ways regarding the future of nuclear energy: German companies RWE and EON AG exit nuclear energy, while Toshiba and Hitachi grasp the opportunities and acquire nuclear power planning companies NuGen and Horizon Nuclear Power.

Japan electronics industries – mono zukuri. Preview this report:

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Copyright (c) 2014 Eurotechnology Japan KK All Rights Reserved

Japanese insurance SOMPO acquires UK reinsurer Canopius Group Ltd

Japanese insurance SOMPO part of NKSJ Holdings acquires UK reinsurer Canopius Group from Bregal Capital

In order to globalize, Japanese insurance company Sompo Japan (株式会社損害保険ジャパン), part of the insurance group NKSJ Holdings (NKSJホールディングス株式会社, TSE / JPX: No. 8630) announced yesterday the acquisition of 100% of the UK re-insurer Canopius Group Limited, operating on Lloyd’s for UKL 594 million (US$ 972 million), from the current owners. Current majority owner of Canopius is Bregal Capital.

Canopius will keep the brand, company name, and management team.

Canopius: one of the top ten insurers on the Lloyd’s market

Canopius, is an insurance group, one of the top ten insurers in the Lloyd’s market, was founded in December 2003, almost exactly ten years ago, via a Management Buy-Out (MBO) with UKL 25 million capital, which grew about twenty-fold to about UKL 500 million today, and today has about 560 employees.

Canopius is named after Nathaniel Canopius, native of Crete, who studied at Balliol College, Oxford, apparently introduced coffee drinking to Oxford around 1637 (according to the Canopius website), and later became Archbishop of Smyrna (Source: “Anglicans and Orthodox, Unity and Subversion, 1559-1725”, by Judith Pinnington, 2003, ISBN 0-85244-577-6, page 15).

Sources: press announcements by the companies, websites.

Japan to EU investment trend

While European investments in Japan are steady, Japanese corporations are investing heavily in Europe, approximately EURO 10 billion per year, in order to globalize and to expand their global foot print, and to acquire new know-how, which is clearly both the case here.

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

Closing the gap: trade between EU and Japan is now balanced

Combining the amounts of trade for merchandise and commercial services, EU exports to Japan and Japanese exports to EU have reached equal levels, so that the trade between EU and Japan is now balanced around EURO 80 billion in each direction, i.e. a combined trade of EURO 160 billion.

Japan is traditionally stronger in the expert of manufactured goods, while EU is stronger in the export of commercial services. Combining both merchandise and services, the trade between EU and Japan is now balanced.

Trade in goods plus services between EU and Japan
Trade in goods plus services between EU and Japan

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

Japan’s direct investments in EU flourish, while EU investments in Japan stagnate

Japan to Europe direct investment: Japanese companies acquire EU companies for EURO 10 billion/year, total Japanese investments in EU are EURO 160 billion

Investment flow between EU and Japan shows strong impact from the Lehmann shock economic downturn. Investment flow from EU to Japan remains at relatively low levels around EURO 1 billion annually, while investments by Japanese companies in the EU are on the order of EURO 10 billion per year currently.

M&A and direct investment (FDI) transactions:

Foreign direct investment (FDI) flow between EU and Japan
Foreign direct investment (FDI) flow between EU and Japan

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

EU Japan investment stock

EU Japan investments: European investments in Japan total about EURO 80 billion and are steady, while Japanese investments in EU increase rapidly

EU Japan investment stock

EU Japan investment: Foreign direct investment (FDI) stock between EU and Japan
Foreign direct investment (FDI) stock between EU and Japan

EU Japan investment: EU to Japan

EU to Japan investment register

EU investments in Japan have been relatively constant around EURO 80 billion. There has been a marked reduction in EU investment in Japan in 2006 due to the withdrawal of Vodafone from Japan with the sale of Vodafone KK to Softbank for approx. EURO 12 billion (find details of the Vodafone-SoftBank M&A transaction here). This reduction of EU investment stock in Japan is clearly visible in the graphics below in 2006 and 2007.

EU Japan investment: Japan to EU

Japan to EU investment register

Japanese investments in EU are steadily increasing, as Japanese companies are seeking to grow business outside Japan’s saturated market, and as Japanese companies acquire European companies for market access, technology and global business footprint. In 2012 the total investment stock of Japanese companies in the EU-27 has reached around EURO 150 billion.

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

Supercell: SoftBank and GungHo acquire 51% for US$ 1.5 billion

softbank invests in supercell

Supercell valued at approx. US$ 3 billion

Supercell investment leverages paradigm shift, time shift and market disconnects

Smartphones and the “freemium” business models are bringing a dual paradigm shift to games and create a new truly global market. To take advantage of this global paradigm shift, its necessary to overcome the cultural disconnects between markets. SoftBank and GungHo‘s investment in the Finnish smartphone/tablet game maker Supercell, announced on Oct. 15, will help to overcome the disconnect between Japan’s and other game markets for both Supercell and GungHo.

The disconnect between Japan and other countries is often surprising – when BusinessWeek in 2006 commented on rumors that SoftBank might introduce an Apple “iPod-Phone” to Japan, BusinessWeek remarked that “Apple would normally never talk to a small-fry such as SoftBank” …. at that time SoftBank’s annual revenues were about twice Apple’s, and BusinessWeek printed my correction pointing out that SoftBank even at that time was anything but a “small fry”.

One of SoftBank‘s aspects is it’s “time-shift” investment model, another is SoftBank‘s 30/300 year vision – both are important factors to understand the Supercell investment.

Supercell investment: Comparing Supercell's US$ 3 billion valuation with Japanese game companies (note that the market cap for the full SONY Group is shown here)
Comparing Supercell’s US$ 3 billion valuation with Japanese game companies (note that the market cap for the full SONY Group is shown here)

This Figure contrasts the market caps of new mobile and smartphone centric game companies (GungHo, Supercell, DeNA and GREE) with traditional console, video game and arcade game companies.

SoftBank announced that because of the majority investment, Supercell will become a subsidiary of SoftBank, and GungHo will account for Supercell’s profit/loss under the equity method.

Supercell investment: Comparing Supercell with Japanese game companies and SoftBank
Comparing Supercell with Japanese game companies and SoftBank

GungHo and Supercell both are top-ranking mobile game companies: GungHo inside Japan with “Puzzle and Dragons”, and Supercell outside Japan with “Hay Day” and “Clash of Clans”. Expect both to leverage each other’s resources.

Both GungHo and Supercell show explosive growth:

GungHo’s operating profits increased 4050% (x 40) for Jan-June 2013 compared to the same period one year earlier.
Supercell’s revenues (mainly in-game purchases) jumped 500x from EURO 151,000 in 2011 to EURO 78 million in 2012.

Culture can be an issue between Japan and other countries, however, SoftBank has invested in more than 1000 comparable companies, and many of SoftBank’s investments have been outstandingly successful including Alibaba and Yahoo.

However, investment and management support by SoftBank does not automatically guarantee success in Japan – despite SoftBank’s investment and support, Zynga closed operations in Japan earlier this year. Success in Japan will remain Supercell’s responsibility, despite SoftBank’s and GungHo’s help and investment – as Zynga can tell.

Copyright (c) 2013-2015 Eurotechnology Japan KK All Rights Reserved

Otsuka buys Astex Pharmaceuticals (NASDAQ:ASTX) for US$ 886 million

Astex Pharmaceuticals is an oncology drug discovery company based on the Pyramid drug discovery platform in Cambridge (UK)

Otsuka buys Astex in a tender offer for US$ 886 million

Otsuka buys Astex Pharmaceuticals (formally Astex Therapeutics, UK). Astex Therapeutics is a oncology drug discovery company based in Cambridge, England, and at the time of acquisition was listed on NASDAQ (ASTX).

The acquisition was done through a tender offer at an offer price of US$ 8.50 per share, a 48% premium on the stock price, starting on 13 September 2013, and completed on 10 October 2013, followed by a merger on 11 October 2013.

Total acquisition capital was US$ 886 million.

Astex Therapeutics

Astex Therapeutics is a oncology drug discovery company, based on a proprietary fragment based “drug discovery platform” Pyramid.

Astex Therapeutics was founded in 1999 in Cambridge, England, by

On 7 April 2011, Astex was acquired by SuperGen (NASDAQ:SUPG). The surviving company was Astex (NASDAQ:ASTX). This acquisition closed on July 2011.

Astex business model based on up-front technology access fees, success fees for milestones and product royalties to fund internal R&D

Astex Therapeutics has developed a business model where revenues offset cash burn. Fee income provides funding for Astex R&D: Astex does not work on a fee-for-service basis, but achieves substantial upfront cash technology access fees, and agrees on success fees based on achieved development milestones, and royalties on product sales.

Examples of major agreements under this business model:

  • 6 December 2005: Novartis, upfront access fee and + deferred equity payments of US$ 25 million, potential of up to US$ 520 in fees. World-wide license for cell-cycle inhibitor AT9311, option to license cell cycle inhibitor AT7519
  • 2008: Janssen, US$ 37 million upfront access fee and equity and initial research funding
  • 2009: GSK, US$ 33 million upfront fee and equity

Otsuka Pharmaceutical Co., Ltd. (大塚製薬株式会社)

Otsuka Pharmaceutical Co., Ltd. (大塚製薬株式会社) is a Japanese pharmaceutical company, founded on 10 August 1964, traded on the Tokyo Stock Exchange (TYO:4578).

Copyright (c) 2017 Eurotechnology Japan KK All Rights Reserved

Ymedia SL and Wink TTD SL investments by Dentsu in Spain

Dentsu 電通

Dentsu further expands the global footprint in Spain

On September 20, 2013 Dentsu announced further European investments this year in its quest to strengthen its global footprint:

  • acquisition of 51% of Ymedia SL via Aegis Media Iberia, full 100% acquisition expected by 2019
  • acquisition of 31.8% of Wink TTD SL via Aegis Media Iberia, full 100% acquisition expected by 2019

Ymedia SL

Ymedia SL is a full-service media agency, founded in December 2006 and based in Madrid, Spain, employing about 50 people.
Gross profits in the year ending Dec 2012 were about UKL 8.8 million.

Wink TTD SL – “Transforming through Digital”

Wink TTD SL: a communication agency for digital transformation.

Gabriel Saenz de Buruaga (former worldwide CEO for Havas Digital) and Alejandro Esteves (former Managing Director of Aegis Media, Spain) founded Wink TTD SL in November 2011 in Madrid, Spain, employing about 40 people.
Gross profits in the year ending Dec 2012 were about UKL 5.1 million.

Wink TTD SL has the following six founding principles:

  1. Fast fish eat slow fish
  2. Sector exclusivity
  3. Best talent in the market
  4. Senior talent dedication to clients
  5. We charge for what we do

Dentsu and Dentsu-Aegis

Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.

A big step forward towards a larger global footprint for Dentsu was the acquisition of the London based Aegis Group, announced on July 5, 2012.

Report on Japan’s media landscape (150 pages, pdf file):
[buy][more information][preview on slideshare]

Copyright·©2009-2015 ·Eurotechnology Japan KK·All Rights Reserved·

fine trade gmbh acquired by NTT Docomo

NTT Docomo

NTT Docomo expands e-commerce trading solutions platform

On August 27, 2013 NTT Docomo announced the planned acquisition of the Austrian company fine trade gmbh, which offers payment solutions to e-commerce and m-commerce companies.

The acquisition price has been reported to be “several tens of millions of EUROs”. Docomo acquired

via Docomo’s German subsidiary DOCOMO Deutschland GmbH (DDL).

fine trade gmbh

fine trade gmbh was founded in 2011.

fine trade gmbh’s business model

fine trade gmbh offers online merchants over 180 different payment options, billing and collection services, including deferred payments against invoice.

fine trade manages credit risks and evaluates shopping data.

Loviit

Loviit is a payment solution provider, taking care of all payment processing and credit management for online retailers. Loviit enables e-commerce and m-commerce providers to offer a full range of payment options.

NTT Docomo’s growing finance and payment platform business in Europe

Through the acquisitions of:

Docomo is continuing to build a platform for finance and payments in Europe and elsewhere.

NTT Docomo offers this payment and finance platform as a B2B service to mobile operators, content and service providers and e-commerce and m-commerce markets.

Copyright (c) 2015 Eurotechnology Japan KK All Rights Reserved

Arkadin’s [enjoy sharing] 91.2% AXA stake to be sold to NTT Communications

NTT eurotechnology.com

Arkadin International SAS valued at approx. US$ 463 million

Collaboration-as-a-Service (CaaS)

On August 5, 2013, NTT Communications (NTT Com) announced that it will acquire 91.2% of the shares of the French conference and collaboration specialist Arkadin International SAS from current investors AXA Private Equity (now: Ardian Investment) and other investors.

The valuation is estimated at approximately US$ 463 million.

After the sale of 91.2% to NTT Communications, ownership will be as follows:

  • 91.2% NTT Communications
  • 8.8% management

Arkadin International SAS [enjoy sharing] – Collaboration-as-a-Service (CaaS)

Arkadin International SAS is one of the world’s largest providers of audio, web, video conferencing and unified communications services.

The company was founded in 2001 by Olivier de Puymorin, and today serves about 37,000 customers in 32 countries.

NTT Communications Corporation (エヌ・ティ・ティ・コミュニケーションズ株式会社)

NTT Communications Corporation (エヌ・ティ・ティ・コミュニケーションズ株式会社) is a fully owned subsidiary of NTT Corporation, Japan’s incumbent telecommunications group.

NTT Communications offers a wide range of data services, data centers, global communications services both in Japan and globally. Main data are:

  • 8000 employees
  • revenues: 981 billion yen (US$ 8 billion)

For a comprehensive analysis of Japan’s telecom industry sector see our Report on Japan’s telecommunications industry.

Copyright·©2013-2015 ·Eurotechnology Japan KK·All Rights Reserved·

Simple Agency srl investment by Japan’s advertising giant Dentsu

Dentsu 電通

Dentsu further expands the global footprint in Europe

Social, content and digital marketing empowerment based in Italy

On July 30, 2013 Dentsu announced another European investment this year in its quest to strengthen its global footprint: the acquisition of a 70% majority share in the Italian

  • Simple Agency via Aegis Media Italia, a of subsidiary Dentsu Aegis Network Ltd.

    Simple Agency srl – “Digital Marketing Empowerment”

    Simple Agency srl was founded in April 2008 in Milan, Italy, by Marco Caradonna, and employs about 30 people.

    Simple Agency has two parts:

    Dentsu and Dentsu-Aegis

    Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.

    A big step forward towards a larger global footprint for Dentsu was the acquisition of the London based Aegis Group, announced on July 5, 2012.

    Report on Japan’s media landscape (150 pages, pdf file):
    [buy][more information][preview on slideshare]

    Copyright·©2009-2015 ·Eurotechnology Japan KK·All Rights Reserved·

  • More FTTH broadband in Japan than in all of EU + Norway + Switzerland + Iceland

    Japan alone currently has about 30% more FTTH optical fiber broadband subscriptions than all EU countries + Switzerland + Norway + Iceland added together.

    How much broadband (ADSL, xDSL and FTTH) is installed in Japan? Find the answer and detailed statistics and market shares in our report on Japan’s telecom industry.

    Similarly, Japan was far in advance of other countries in laying the foundations for the mobile internet, with the introduction of the DoPa (DoCoMo Packet) packet switched network on March 28, 1997, several years before packet switched networks were introduced in EU and elsewhere. However, Japan’s electronics and telecoms industries largely failed to capture global value from this pioneering work. Essentially only Softbank with the SPRINT acquisition now has hope to capture such global value.

    A very interesting point is that in EU there are many discussions and uncertainties how broadband fiber investments can be profitable. Japan has solved this problem: FTTH business in Japan is profitable. We see arbitraging opportunities in capturing value from Japan’s know-how, similar to Softbank’s “time shift” investments, arbitraging the time shift of internet roll-out in US vs Japan vs China, as explained in our Softbank-report.

    about 30% more FTTH subscriptions in Japan than in all of EU + Switzerland + Norway + Iceland
    about 30% more FTTH subscriptions in Japan than in all of EU + Switzerland + Norway + Iceland

    Japan has 30% more FTTH fiber broadband subscriptions than EU + Switzerland + Norway + Iceland…

    Several years ago the EU engaged our company Eurotechnology Japan KK to benchmark EU vs Japan in fixed and wireless broadband. Our summary was that broadband connections are the lifeblood of our information society, and that Japan was far ahead of EU in providing and using both fixed and wireless broadband, and broad band fiber connections were much faster and cheaper in Japan than in EU. Although both have progressed since our benchmarking work for the EU, Japan is still very far ahead of EU in terms of fast fiber broadband penetration.

    However, provision of broadband fiber connections is only one side of the coin. The other side of the coin is capturing value and creating wealth for the society. The really important point is, whether Japan’s electronics, telecoms, content and service industries can capture global value from the advanced deployment of broadband infrastructure. As we discussed in detail in the “Post-Galapagos working group”, Japan is being held back by the “Galapagos effect” – and the trick will be to make the necessary changes to break out from this trap.
    Read detailed analysis in our Japan-Telecommunications-Industry Report

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

    Social Embassy BV acquired by Dentsu

    Dentsu 電通

    Dentsu further expands the global footprint in Europe

    Content & community management, brand engagement, social media, SNS advertising based in The Netherlands

    On May 23, 2013 Dentsu announced another European acquisition within the single month of May 2013 in its quest to strengthen its global footprint: the acquisition of the leading Dutch social media agency Social Embassy BV via its European subsidiary Dentsu Aegis Network Ltd.

    Social Embassy BV

    Social Embassy BV is The Netherlands’ largest social media agency, based in Amsterdam. The company was founded in 2008 by Steven Jongeneel and co-founder Niels van der Velden, and focuses on strategy & insights, content & community management, creative, brand engagement and advertising.

    The company employed about 30 people when Dentsu acquired it.

    Dentsu and Dentsu-Aegis

    Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.

    A big step forward towards a larger global footprint for Dentsu was the acquisition of the London based Aegis Group, announced on July 5, 2012.

    Report on Japan’s media landscape (150 pages, pdf file):
    [buy][more information][preview on slideshare]

    Copyright·©2009-2015 ·Eurotechnology Japan KK·All Rights Reserved·

    Kinecto, Romania’s leading digital advertising agency acquired by Dentsu

    Dentsu 電通

    Renamed Kinecto Isobar

    On May 14, 2013 Dentsu announced the acquisition of the Romanian digital advertising agency Kinecto via its subsidiary Dentsu-Aegis, based in London. Following the acquisition, the company was renamed Kinecto Isobar.

    Kinecto

    Kinecto International SRL is one of the most important digital advertising agencies in Romania, and was founded in 2002 by Dr Radu Ionesco and has about 10 employees.

    The company focuses on online and social media campaigns, CRM programs, creative and production services for websites and micro websites, email marketing and search engine marketing

    Before acquisition by Dentsu-Aegis, the company was part of the Tempo Creative Group.

    Dentsu and Dentsu-Aegis

    Dentsu dominates Japan’s advertising space, and is a very very strong force in Japan’s media industry sector, through control and management of major advertising channels with an overwhelming market share in Japan, and has been working hard to leverage its creative power and strength in Japan into a larger global footprint.

    A big step forward towards a larger global footprint for Dentsu was the acquisition of the London based Aegis Group, announced on July 5, 2012.

    Report on Japan’s media landscape (150 pages, pdf file):
    [buy][more information][preview on slideshare]

    Copyright·©2009-2015 ·Eurotechnology Japan KK·All Rights Reserved·

    Panasonic Automotive acquires AUPEO! – streaming music into internet connected cars

    Panasonic

    Panasonic continues to restructure away from commodities

    Panasonic Automotive acquires AUPEO! to stream music into internet connected cars

    Japan’s electronics giants are under immense pressure to refocus away from commodities. Panasonic Automotive now acquires the German company AUPEO!, specialized on streaming music into internet connected cars.

    Aupeo was founded in Berlin’s startup scene in 2008 by Armin Schmidt and CEO Holger Weiss, and focuses on streaming music into internet connected cars.

    AUPEO! works both B2B with car manufacturers and aftermarket car audio producers and also B2C offering services to consumers.

    AUPEO! currently works with the following OEMs

    • BMW
    • Mercedes
    • Mini
    • Honda
    • Toyota
    • Ford
    • Audi

    and in the aftermarket with:

    • Pioneer
    • JVC Kenwood

    More information here on corporate.aupeo.com/about-us/

    Copyright (c) 2014 Eurotechnology Japan KK All Rights Reserved

    Mitsui Chemicals acquires Heraeus Kulzer GmbH, dental materials for € 450 million

    Heraeus divests Heraeus Kulzer GmbH because the use of precious materials for dental restoration is declining

    Mitsui Chemicals [4183] acquires Heraeus Kulzer GmbH to combine with Sun Medical Co Ltd to form a global dental materials business

    At the Board Meeting of April 4, 2013 Mitsui Chemicals Inc decided to acquire the dental business of Heraeus Holding GmbH (Heraeus Dental).

    Mitsui Chemicals and Heraeus Holding GmbH agreed to a valuation of € 450 million (YEN 54.3 billion) including debt, and to be adjusted to changes in working capital and cash on the closing date.

    Mitsui Chemicals’ subsidiary Sun Medical Co Ltd has been producing dental materials for 30 years, and plans to combine Heraeus Dental with Sun Medical Co Ltd to form a combined global dental materials business.

    Heraeus decided to divest Heraeus Dental, mentioning that the dental industry is changing and the use of precious materials for dental restoration is declining.

    Heraeus Holding GmbH (Seller)

    Heraeus is a family owned privately held company, with core focus on precious metals.

    Heraeus was founded in 1851 by the pharmacist and chemist Wilhelm Carl Heraeus, who had inherited his father’s pharmacy “Einhorn Apotheke” in Hanau, near Frankfurt. Wilhelm Carl Heraeus invented a method to melt platinum using a oxyhydrogen blowpipe. In 1857, Wilhelm Carl Heraeus produced about 30 kilograms of pure platinum, and about 1 ton in 1896.

    Heraeus Holding GmbH achieves € 3.4 billion in product revenues + € 12.2 billion in precious metal trading revenues, a total of € 15.589 billion revenues annually in 2014 with about 12,600 employees.

    Heraeus Kulzer, Heraeus Dental and Heraeus Medical

    Heraeus since the 1930 supplies dental materials based on the gold, silver and palladium alloy Alba, and a variety of gold and ceramic bonding alloys. In 2009, Heraeus Kulzer was split into Heraeus Dental and Heraeus Medical.

    Heraeus Dental (Trade name) / Heraeus Kulzer GmbH (Corporate group)

    Heraeus Kulzer consists of 17 corporate entities (share deal) and 9 entities (asset deal), a total of 26 legal entities.

    Net assets: € 57.5 million (as of Dec 31, 2012)
    Gross assets: € 165.3 million (as of Dec 31, 2012)

    Revenues: € 353.6 million (year ending Dec 2012)
    Operating income: € 16.2 million (year ending Dec 2012)

    Copyright (c) 2016-2017 Eurotechnology Japan KK All Rights Reserved

    Japan energy market: How can an EU company succeed in Japan’s energy landscape? (EU-Japan Gateway keynote)

    Japan energy market entry for EU companies: how can EU companies succeed in Japan's energy markets? EU Japan gate way keynote talk.

    Japan energy market entry for EU companies

    EU-Japan Gateway program keynote

    I was invited to give a keynote talk to about 50 European participants in the EU-Japan Gateway program, which assists small and medium sized European companies to enter the Japanese market.

    Japan energy market: “How can a European company succeed in Japan’s energy landscape?”

    I explained Japan’s energy situation today, based on our reports:
    Renewable energy in Japan
    Japan’s energy sector

    followed by some advice on how a European company can succeed in Japan, covering the following points:

    • you often need a taylor made solution for Japan
    • you need to understand the market, market landscape, need to do your market research
    • you need to understand the value of your product/service in Japan’s market
    • you need working capital to build business in Japan, somebody needs to invest this working capital: you, your investors, or in some cases Japanese partners, each option has advantages and disadvantages
    • some common mistakes – why business development in Japan can fail
    • some steps towards success

    Hitachi Consulting acquires operations management consulting firm Celerant Consulting at a value of about US$ 145 million

    Hitachi

    Hitachi Consulting growth is in line with Hitachi’s Smart Transformation

    Hitachi Consulting aims to grow to US$ 1.5 billion annual revenues by FY2015

    Hitachi Consulting announced on January 2, 2013 the acquisition of the UK based operations management consulting firm Celerant Consulting.

    Caledonia Investments announced the sale of its 47.3% ownership in Celerant Consulting for around 47.7 million pounds (US$ 68 million). Therefore we estimate that the full acquisition price of 100% of Celerant Consulting is around 92 million British Pounds (US$ 145 million).

    Celerant Consulting

    Celerant Consulting was founded in 1987 as Cambridge Management Consulting Limited by Ian P. Clarkson, and changed the name to Celerant Consulting Limited in May 2001. Headquarters are in Richmond (UK) and since December 31, 2012, Celerant Consulting Limited is a subsidiary of Hitachi Consulting Corporation.

    Caledonia Investments invested in Celerant Consulting in May 2006, backing an MBO from Novell Inc.

    Hitachi Consulting and Hitachi

    Hitachi Consulting is part of the Hitachi Information & Telecommunications System Company (ITSC).

    Hitachi is Japan’s largest electronics and electrical industry group. After about 17 years of stagnation, very low growth and very small profits, Hitachi was shell-shocked by approx. US$ 8 billion losses in FY2009 to embark on “Hitachi’s Smart Transformation”. Acquisition of Celerant Consulting is in line with Hitachi’s Smart Transformation, which includes a shift to profitable services and globalization.

    Find details in our report on “Japan’s Electronics Industry”:
    [buy][subscribe][more info]

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    Copyright (c) 2015 Eurotechnology Japan KK All Rights Reserved

    Hitachi Europe acquires The Railway Engineering Company (TRE)

    Hitachi

    TRE supplies simulators and automatic routing systems

    Hitachi Europe expands European Traffic Managment Railways (TMS) sector

    Hitachi Europe, on December 20, 2012 announced the acquisition of The Railway Engineering Company (TRE) from James Fisher and Sons plc for UKL 25.5 million.

    The Railway Engineering Company (TRE) products include:

    • Automatic Routing Systems
    • Signalling and Interlocking Simulation
    • Data Preparation tools
    • Signalling System support
    • TREsim, a high fidelity simulator and TREsa
    • Signallers Automatic Route Setting (SARS)
    • Signallers Assistant Control System (SACS)

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    Copyright (c) 2014 Eurotechnology Japan KK All Rights Reserved

    Alpha Direct Services (ADS) acquired by Rakuten to build European logistics

    Rakuten

    Rakuten builds European logistics infrastructure

    Rakuten’s 6th acquisition in Europe

    Rakuten is aggressively globalizing in the face of intense competition by Amazon.com, and more recently Alibaba. As part of global growth, Rakuten is acquiring a string of e-commerce, e-book, online media, and software and service companies in Europe. Now Rakuten has started to build fulfillment logistics infrastructure in Europe to strengthen the backend of e-commerce.

    On November 6, 2012, Rakuten announced the acquisition of logistics specialist Alpha Direct Services (ADS), based in Beauvais (France), from the previous owners:

    Note that in 2013, Rakuten acquired the US-based logistics company Webgistix, continuing the strategy to build a global logistics network.

    Alpha Direct Services (ADS)

    Alpha Direct Services (ADS) was founded in 2002 by Adrian Diaconu based on the acquisition of the French book club enterprise “Grand Livre du Mois”, with annual sales of € 3.5 million (US$ 4 million).

    ADS offers a global value chain:

    • front-end websites
    • order management
    • receipt of products
    • storage, warehousing
    • order picking
    • fulfillment delivery, shipping (BtoB and BtoC)
    • reverse logistics
    • customer relationship management (CRM)

    Adrian Deacon developed Alpha Direct Services (ADS) into a mail order, e-commerce and multi-channel logistics company.

    Alpha Direct Services (ADS):

    • 490 employees
    • storage surfaces: total 130,000 square meters
    • inventory: 2 million products
    • 24 million packages shipped/year
    • 180 active clients

    Alpha Direct Services (ADS) growth:

    • 2007: acquired Evreux logistical unit
    • 2013: acquired Moissy-Cramayel logistical unit
    • 2014: 13,000 square meter extension of Beauvais logistical unit

    Copyright (c) 2012-2015 Eurotechnology Japan KK All Rights Reserved

    Horizon Nuclear Power acquired by Hitachi for £696 million

    Hitachi

    Hitachi to build 6 GigaWatt of nuclear power in UK

    E.ON and RWE to withdraw, Chinese consortium lost bid

    In tune with Germany’s “Energiewende”, E.ON and RWE npower decided to sell Horizon Nuclear Power.

    On October 29, 2012 Hitachi Ltd (株式会社日立製作所) announced the agreement to acquire Horizon Nuclear Power for £696 million (approx. US$ 1 billion), and the purchase was completed on November 26, 2012.

    One of the bidders was a joint venture between China Guangdong Nuclear Power Group and China National Nuclear Corporation, however dropped out of the competition.

    Engineering, Procurement and Construction (EPC) will reportedly be undertaken by a joint venture of Hitachi Ltd (株式会社日立製作所), Babcock, Rolls-Royce, and SNC-Lavalin Group.

    UK is planning to invest £110 billion to replace existing nuclear power stations with modern designs.

    Horizon Nuclear Power

    Horizon Nuclear Power was founded in 2009 as a joint venture between E.ON and RWE npower with the plan to build a nuclear power station with 6 GigaWatt capacity on a site close to the Oldbury and Wylfa nuclear power stations.

    Wylfa nuclear power station is located near Wylfa Newydd (Isle of Anglesey) and can be found here on Google-Maps.

    Oldbury nuclear power station is located about 23 miles from Bristol (UK), Oldbury (South Gloucestershire, on the banks of the Severn Estuary), and can be found here on Google-Maps.

    Horizon Nuclear Power plans:

    • Wylfa Newydd (Isle of Anglesey): two Advanced Boiling Water Reactors (WBWRs) planned delivering 2.7 GigaWatt
    • Oldbury (South Gloucestershire): 2.7 GigaWatt planned

    Hitachi Ltd (株式会社日立製作所)

    Hitachi Ltd (株式会社日立製作所) aims to grow its nuclear business to YEN 360 billion/year (approx US$ 3 billion) by 2021.

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    Copyright (c) 2012-2015 Eurotechnology Japan KK All Rights Reserved

    Aquafadas SAS acquired by Rakuten via e-reader company Kobo

    Rakuten

    Kobo acquires French digital publishing tool company Aquafadas

    Rakuten acquired e-reader manufacturer Kobo

    Rakuten acquired 100% of e-reader manufacturer Kobo for US$ 315 million in cash in January 2012.

    Kobo announced the acquisition of French digital publishing company Aquafadas on October 10, 2012.

    Aquafadas

    http://www.aquafadas.com was founded in Montpeller in 2004 by Matthieu Kopp (CTO) and Claudia Zimmer (CEO). Today headquarters are located in the Montpellier International Business Incubator’s (MIBI).

    “Aquafadas” is the combination of “Aqua”, the name for Apple OSX’ graphical user interface and “fada”, which is the goddess of inspiration (Muse) in Occitan (the original language used in the Provence).

    Tools include:

    • InDesign Authoring: publishing customer mobile apps for iOS and Android using Adobe InDesign
    • Cloud Authoring: conversion of print to interactive mobile apps, e-books and web applications
    • CreativeFlow: creating of digital magazine apps
    • ConversionFlow: importing print documents to smartphones, tablets and web
    • Aquafadas Viewer
    • AppFactory
    • ComicComposer
    • Cloud Connect
    • App Marketing Tools
    • SDK Packages

    Desktop apps include:

    • MotionComposer
    • BannerZest
    • PulpMotion
    • KidsMotion
    • SnapFlow
    • iDive
    • Videopier

    Copyright (c) 2012-2015 Eurotechnology Japan KK All Rights Reserved

    Hitachi “inspire the next” Europe opens Rail Research Centre (ERRC)

    Hitachi

    European Rail Research Centre (ERRC) to focus on rolling stock design, manufacturing, maintenance and traffic management systems

    ERCC will be part of Hitachi Europe’s Transportation Energy & Environment Research Laboratory

    Hitachi “inspire the next” announced on October 10, 2012 the opening of the new European Rail Research Centre (ERRC) in London, to support Hitachi’s many rail projects in Europe and globally.

    Hitachi’s new European Rail Research Centre (ERRC) will conduct research into:

    • rolling stock design
    • manufacturing
    • maintenance
    • traffic management systems

    Hitachi Rail Europe recent orders

    • UK Department for Transport’s Intercity Express Programme (IEP): 225 km/h Super Express Trains (SETs) to be financed, supplied and maintained by Agility Trains. Total number of trains: 122 trains
    • UK Network Rail Infrastructure Limited (“Network Rail”): prototype Traffic Management System

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    Copyright (c) 2012 Eurotechnology Japan KK All Rights Reserved

    Buongiorno SpA acquired by NTT Docomo for € 209 million (US$ 260 million)

    NTT Docomo

    NTT Docomo acquired Italian mobile content, apps and service provider in a public tender offer

    Buongiorno SpA becomes fully owned subsidiary of NTT Docomo

    NTT Docomo acquired mobile content provider Buongiorno SpA in August 2012 following a public tender offer via Docomo’s German subsidiary DOCOMO Deutschland GmbH. The shares were delisted from the Italian Stock Exchange on August 22, 2012.

    Buongiorno SpA

    Buongiorno Chairman Mauro Del Rio in 1995 sent email messages with the subject line “Buongiorno” (= good morning) to 11 friends with daily jokes, in 1998 Mauro Del Rio’s newsletters went to 25,000 people, creating the base for the company.

    As of December 31, 2006, Buongiorno SpA had consolidated investments of € 157.2 million, and consolidated revenues of € 191.8 million, and consolidated net income of € 12.6 million, and approx. 659 employees.

    Buongiorno SpA has grown through a series of acquisitions:

    • MyAlert in 2001
    • merger with Vitaminic in July 2003
    • Gsmbox in 2004
    • Freever (founded by Jerome Trainel, Philippe Tissot, and Pierre Duhau-Laurent) in 2005
    • Tutch NL in 2005
    • Dioranews in 2005
    • Inventa in 2006
    • Rocket Mobile in 2007
    • HotSMS
    • FlyTXT
    • iTouch in 2007
    • eDong Asia
    • Glamoo
    • Dada.net in 2011
    • carve out B2B business into Lumata Group

    Copyright (c) 2014 Eurotechnology Japan KK All Rights Reserved

    Mobile payment in EU vs Japan: 10 years to reinvent the wheel?

    Mobile payments for transport first introduced commercially in Tokyo January 28, 2006

    Tokyo (mobile SUICA, FeliCa) vs. London (OYSTER, Mifare)

    Mobile payments are big: Reuters estimates that the mobile payment market will be about US$ 1000 Billion by 2016, and in Japan just a single railway line achieves already now several US$ billion in mobile payments per year.

    Mobile payment in London:

    On July 17, 2012 The Wall Street Journal reports, that as far as Transport for London is concerned, there is no viable mobile payment solution at this time:

    • Transport for London sees no way to use mobile payments at ticket barriers at this time, because the technology is not advanced enough
    • London’s state-of the art mobile payment transactions take longer than 500 milli-seconds which is too slow for Transport for London requirements

    Mobile payment in Tokyo:

    While no viable solution has yet been found in London, in Tokyo millions of people use “mobile SUICA” mobile payments every day at Tokyo’s rail, subway, tram lines and buses:

    • mobile payments at ticket barriers were first demonstrated in Tokyo in 2003 (photo below shows a demonstration at a trade show in Tokyo in 2004)
    • “mobile SUICA” mobile payments were commercially introduced to the public since January 28, 2006
    • payment transactions take 100 milli-seconds or less, which would fulfill Transport for London’s speed requirements
    • in addition mobile SUICA also has a full e-money function, and can be used at 1000s of stores all over Japan for payments, and for 1000s km of high-speed trains all over the main island of Japan, between Hakata and Aomori.

    Why does it take at least ten years to reinvent the mobile payment wheel in London?

    Why is it that a problem the solution of which was demonstrated in Tokyo in 2003 and put to commercial use every day since January 28, 2006 without any problems, has not yet been solved in London even today?

    The answer to this question is of course complex, and you will find elements of a discussion of this question on pages 185-188 of our mobile payment report (click here for free download which includes pages 185 – 188, pdf-file).

    In our opinion the answer for this huge delay even today in the age of globalization and internet is a combination of:

    • human nature and
    • the huge communication gap and disconnect between European organizations and companies and Japanese organizations and companies and
    • the totally different way in which banking systems, payment systems, and also the commercial structure and way of thinking of transportation companies are organized regulated in EU vs Japan.

    We have been working on mobile payment and e-money issues here in Tokyo for about 10 years or longer, and you may be interested in some of our reports:

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

    Dentsu acquires Aegis

    Dentsu 電通

    Aegis Group plc, a UK company with French roots

    Dentsu’s challenge to grow global footprint while managing cultural differences

    On Thursday, July 5th, 2012, Dentsu announced the acquisition of Aegis Group plc, a UK company with French roots, centered on media advertising media buying.

    Dentsu’s need to globalize

    Driving this acquisition was Dentsu’s need to globalize, to create the necessary global footprint to compete with Publicis, WPP, Omnicom, Interpublic, Havas on one hand, and with newcomers Google and Facebook.

    Dentsu Aegis Network created to overcome cultural issues

    To overcome the important cultural issues of Japan-focused Dentsu, the “Dentsu Aegis Network” was created which combines seven major global brands:

    • Carat
    • Dentsu
    • Dentsu Media
    • iProspect
    • Isobar
    • Posterscope
    • Vizeum

    Dentsu acquires expertise in local markets

    This acquisition enables Dentsu to acquire companies in local markets via this new European subsidiary. For European examples, see our listing of Japanese acquisitions in Europe.

    Previously, Dentsu had acquired:

    • Steak Group, a UK based digital media group
    • Adjug, a UK based advertising exchange

    Report on Japan’s media landscape (150 pages, pdf file):
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    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

    Nidec acquires Ansaldo Sistemi Industriali S.p.A

    nidec 日本電産株式会社

    Reorganized as Nidec ASI

    Nidec: “for everything that spins and moves”

    Nidec acquires Ansaldo Sistemi Industriali S.p.A. from HVEASI Holding BV, affiliated with Patriarch Partners LLC. The acquisition was completed in May 2012.

    Ansaldo Sistemi Industriali S.p.A (ASI) renamed: “Nidec ASI S.p.A.” and set up a Japan subsidiary Nidec ASI Japan Corporation to develop Nidec ASI’s business in Japan and South Korea.

    Ansaldo Sistemi Industriali S.p.A.

    Ansaldo Sistemi Industriali S.p.A. was founded in 1853 in Milano (Italy). Ansaldo Sistemi Industriali S.p.A. has about 1217 employees.

    Sales in Fiscal Year 2011 were € 292 million.
    Assets as of Dec 31, 2011 were € 469.1 million, fixed assets were € 56 million.

    Businesses are:

    • Motors, Generators and Drives Business
    • generators
    • Industrial Systems and Automation Business
    • Services (Maintenance) Business

    Nidec was founded in 1944 in Kyoto by Nagamori Shigenobu, and produces motors, machinery, optical parts, camera shutters and other electro-mechanical equipment.

    Read our report on Japan’s electronics industry sector to learn more about NIDEC and its place in Japan’s electronics industry sector:
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    Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

    Tokyo AIM stock market rebirth under Tokyo Stock Exchange (TSE) alone?

    Tokyo AIM – will it go the same way as NASDAQ-Japan?

    Nikkei: “Tokyo Stock Exchange has learnt enough from the London Stock Exchange to set up a similar market on its own”

    Tokyo AIM (the stock market joint venture between Tokyo Stock Exchange and London Stock Exchange) seems to be heading along a similar road as NASDAQ-Japan about 10 years earlier, according to an article in NIKKEI this morning (morning edition of March 26, 2012).

    Tokyo Stock Exchange plans to create a market more welcoming than Tokyo AIM

    Nikkei reports this morning that “Tokyo Stock Exchange has learnt enough from the London Stock Exchange to set up a similar market on its own. TSE plans to improve the rules of its own new market, so that TSE can create a more welcoming market”.

    Reminds me of NASDAQ-Japan almost exactly 10 years ago:

    At the end of 2002 I met with one of my friends, until a few days earlier CFO of NASDAQ-Japan, which terminated operations in Japan on October 15, 2002. I asked him as many questions as I could to build myself a good picture of why NASDAQ had not been successful in Japan, and why NASDAQ decided to terminate its operations in Japan. (After our conversation he offered my small company the used office furniture of NASDAQ-Japan at a good price, had I accepted this offer, my company’s people would all be sitting on x-NASDAQ-Japan chairs and desks…)

    NASDAQ initially entered Japan in a joint-venture with Softbank

    NASDAQ initially entered Japan in a joint-venture with Softbank, and built the NASDAQ-Japan stock exchange in cooperation with the Osaka Stock Exchange (OSE). When NASDAQ decided to terminate operations in Japan in October 2002, about 100 companies were listed on NASDAQ-Japan.

    NASDAQ quit Japan, and NASAQ-Japan became the HERCULES Stock Market

    The stock market built up by NASDAQ in Japan became HERCULES (full name: Nippon New Market Hercules) when NASDAQ exited Japan, and in December 2008 Osaka Stock Exchange acquired JASDAQ, and October 12, 2010 Hercules, JASDAQ and NEO were merged to form New-JASDAQ. This year, 2012, there were 7 IPOs on the New-JASDAQ, and about 1000 companies are currently traded on New-JASDAQ.

    Interesting to see that NASDAQ-Japan’s market and probably also the market to evolve now from TOKYO-AIM are success stories from the OSE and the TSE points of view, while NASDAQ and now apparently London-Stock-Exchange AIM withdrew from Japan.

    Lots to learn here for foreign companies with complex high-tech businesses such as stock exchanges entering and building business in Japan.

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

    Murata “innovator in electronics” acquires world’s largest independent MEMS manufacturer VTI Technologies Oy

    Murata acquires world's largest independent MEMS manufacturer VTI Technologies for € 195 million. Renamed to Murata Electronics Oy.

    VTI Technologies Oy acquired by Murata for € 195 million from EQT III

    Capacitive MEMS sensor maker VTI Technologies Oy is a perfect fit for miniature ceramic capacitor specialist Murata Electronics Oy

    Murata and private equity group EQT on October 11, 2011, announced the sale of VTI Technologies Oy to Murata for € 195 million. VTI Technologies Oy will be renamed Murata Electronics Oy, website:

    http://www.muratamems.fi

    VTI Technologies Oy

    VTI Technologies Oy develops and manufactures acceleration, inclination, and angular momentum sensors using silicon based capacitive sensors based on proprietary 3D MEMS technology.

    Net sales in 2010 were € 75.8 million.

    EQT III acquired VTI from Breed Technologies in June 2002, VTI invested substantially in MEMS R&D and expanded sales by more than 75%.

    EQT

    EQT is a private equity fund, and was established in 1994 by Investor AB, AEA Investors, SEB and the founding partners.

    • 17 funds with about € 22 billion capital raised
    • Investment strategies: equity, mid market, infrastructure and credit
    • about 120 investments and 60 exits
    • approximately 140,000 employees and € 17 billion total sales within EQT portfolio companies
    • 19 offices in 14 countries

    EQT III

    EQT III was established in 2001 with committed capital of € 2 billion and is now fully invested.

    EQT III‘s focus was on medium-sized companies in Northern Europe in engineering, medical technology, telecom, automotive and branded consumer goods and business services.

    Murata Manufacturing

    Murata Manufacturing was founded by Akira Murata in Kyoto in October 1944, and focuses on ceramic passive electronics components, and manufactures the worlds smallest ceramic capacitors.

    Read our report on Japan’s electronics industry sector:
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    Copyright·©2015 ·Eurotechnology Japan KK·All Rights Reserved·

    Rakuten acquires UK e-commerce portal Play.com

    Rakuten

    Play.com: third European company acquired by Rakuten.com

    Rakuten continues global battle with Amazon.com

    On September 21, 2011, Rakuten announced acquisition of 100% of the UK e-commerce portal site Play.com for UKL 25 million (approx. US$ 40 million).

    Rakuten’s acquisition of Play.com (UK) follows the acquisitions of PriceMinister (France) and Tradoria (Germany).

    Play.com

    Play.com sells music, books, clothes, accessories and electronics, and has 14 million registered users and 7 million listed products. Play.com is the largest UK online seller of DVDs.
    Play.com has approximately 500 employees.

    Play.com was founded in 1998 on Jersey (Channel Islands) by Richard Goulding, Simon Perrée and Peter de Bourcier – all 28 years old – in backrooms of the local Athlete’s Foot store, run by Play.com founders Richard Goulding, Simon Perrée, and with investment from Zuma Investments Limited (registered in Jersey, see registration information in the JFSC Companies Registry here).

    • In 2004 Play.com sold 15 million shipments and sales of UKL 190m
    • In 2005 Play.com sold 25 million shipments and a sales of UKL 250m
    • In 2011 Play.com is estimated to achieve sales of UKL 400 million

    Play.com and the Channel Island tax loophole

    Under EU rules established around 1980, merchandise priced less than UKL 18 (approx. US$ 30) from Channel Island based websites could be sold to customers in the UK without paying VAT (value added tax). UK plans to close this loophole by March 2012.

    Copyright (c) 2011-2015 Eurotechnology Japan KK All Rights Reserved

    Landis+Gyr acquired by Toshiba and The Innovation Network Corporation of Japan (INCJ)

    Toshiba

    Landis+Gyr to become “independent growth platform” within the Toshiba Group for smart meters and smart grid

    Landis+Gyr acquired by Toshiba (60%) and Innovation Network Corporation of Japan (40%) for US$ 2.3 billion

    Landis+Gyr acquired by Toshiba and The Innovation Network Corporation of Japan: this acquisition was finalized with a shareholder’s and share purchase agreement between Toshiba and INCJ and Landis+Gyr, announced on 25 July 2011.

    Initially, on 19 May 2011, Toshiba had announced the 100% acquisition of Landis+Gyr by Toshiba alone for US$ 2.3 billion including assumption of debt. Apparently, The Innovation Network Corporation of Japan entered this partnership sometime between May and July 2011 as an additional investor.

    Toshiba established a Special Purpose Vehicle (SPV):

    • Toshiba invests: US$ 1.02 billion corresponding to 60% of equity
    • INCJ invests: US$ 0.680 billion corresponding to 40% of equity

    In addition, Toshiba assumed Landis+Gyr’s net debt of US$ 600 million, thus the total cost to Toshiba is:

    • 60% equity in SPV: US$ 1.02 billion
    • assumption of Landis+Gyr net debt: US$ 0.6 billion
    • total acquisition cost to Toshiba: US$ 1.62 billion

    The Innovation Network Corporation of Japan (INCJ) invested US$ 680 million into this SVP, acquiring 40% of the SVP’s equity.

    Landis+Gyr – “manage energy better”

    Landis+Gyr was founded in 1896 as Elektrotechnisches Institut Theiler & Co in Zug, Switzerland by Richard Theiler. In 1904, Richard Theiler appointed the engineer Heinrich Landis as his successor. Heinrich Landis partnered with Dr. Karl Heinrich Gyr in 1905, and the company changed its name to Landis & Gyr in 1905.

    In 1998 Landis & Gyr was acquired by Siemens, and then again spun out in 2002 with the new version of the company name: Landis+Gyr.

    Landis+Gyr produces smart meters, smart grid equipment and related technology and services, with the mission to “manage energy better”.

    Landis+Gyr’s customers are mainly energy, gas and electricity utility companies throughout the world for their smart meter and smart grid networks.

    The Innovation Network Corporation of Japan (INCJ)

    The Innovation Network Corporation of Japan (INCJ) is an investment fund established on 27 July 2009 as a public-private partnership between the Japanese Government and 26 major Japanese corporations temporarily for 15 years.

    Investment capability:

    • Capitalization: YEN 300 billion (=approx US$ 3 billion)
      • Japanese Government: YEN 286 billion
      • 26 corporations: YEN 14 billion
    • Japanese Government guarantees: YEN 1800 billion (=approx US$ 18 billion)
    • Total investment capability: YEN 2100 billion (=approx US$ 21 billion)

    INCJ has made a range of investments, the largest investment (YEN 200 billion = approx. US$ 2 billion) is in Japan Display.

    In addition to the Japanese Government, 26 investors (total YEN 14 billion) are:

    • Asahi Kasei Corporation
    • Canon Inc.
    • Osaka Gas Co., Ltd.
    • Sharp Corporation
    • The Shoko Chukin Bank, Ltd.
    • Sumitomo Chemical Co., Ltd.
    • Sumitomo Corporation
    • Sumitomo Electric Industries, Ltd.
    • Sony Corporation
    • Takeda Pharmaceutical Company Limited
    • Toshiba Corporation
    • TOYOTA MOTOR CORPORATION
    • JGC Corporation
    • Development Bank of Japan Inc.
    • Panasonic Corporation
    • East Japan Railway Company
    • Hitachi, Ltd.
    • Marubeni Corporation
    • Mizuho Bank, Ltd.
    • Sumitomo Mitsui Banking Corporation
    • Mitsubishi Chemical Holdings Corporation
    • Mitsubishi Heavy Industries, Ltd.
    • Mitsubishi Corporation
    • The Bank of Tokyo-Mitsubishi UFJ, Ltd.
    • GE Japan Corporation
    • JX Nippon Oil & Energy Corporation

    Toshiba

    Toshiba is one of Japan’s eight top electronics group, which we analyze in our report “Japan’s electronics industries: mono zukuri

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    Copyright (c) 2011 Eurotechnology Japan KK All Rights Reserved

    Rakuten acquires 80% of German e-commerce platform Tradoria

    Rakuten

    Rakuten continues global expansion

    Competing with Amazon.com….

    On July 28, 2011, Rakuten announced the acquisition of 80% of Germany’s e-commerce site Tradoria for a “double-digit million” amount.

    Tradoria has been rebranded as Rakuten.de and has become part of Rakuten Deutschland GmbH.

    Tradoria

    Tradoria was founded in 2007, and today has more than 4400 online stores offering approximately 8 million products.

    Tradoria is based in Bamberg, and before the acquisition by Rakuten, investors included:

    • Seventure Partners (about 24 %)
    • DuMont Venture (about 19 %)
    • European Founders Fund of the Samwer brothers (about 11 %)

    Copyright (c) 2011-2015 Eurotechnology Japan KK All Rights Reserved

    Value Team SpA acquired by NTT Data

    NTT eurotechnology.com

    NTT Data’s a bridgehead to Brazil and South America

    Value Team SpA serves about 300 clients with about 3000 professionals

    On April 25, 2011, NTT Data announced the acquisition of 100% of shares of Value Team SpA via the subsidiary NTT Data Europe GmbH & Co KG for about € 250 million.

    Value Team SpA

    Founded in 2004 as part of Value Partners to offer business oriented IT services, and grew via acquisitions in Brazil and in Italy.

    In 2010, with about 3000 professionals served about 300 clients in the telecommunications, financial services and manufacturing sectors, and achieved € 308 million in revenues.

    NTT Data

    NTT Data, a subsidiary of Japan’s incumbent telecommunications group NTT, has been growing successfully around the globe with a series of acquisitions, including:

    Hitachi Zosen acquires Energy-from-Waste (EfW) engineering firm AE&E Inova AG in Zürich, to become Hitachi Zosen Inova AG (HZI AG)

    Hitachi

    Waste is our energy! Energy-from-Waste (EfW)

    Hitachi Zosen acquires former Von Roll Inova to form Hitachi Zosen Inova AG

    AE&E Inova Holding AG filed for bankruptcy on December 3, 2010, and Hitachi Zosen Corporation (日立造船株式会社) acquired 100% of the shares of AE&E Inova Holding AG in Zurich with approval of the bankruptcy court, and the acquisition became final on December 20, 2010.

    Subsequently AE&E Inova Holding AG was renamed Hitachi Zosen Inova AG or abbreviated, HZI AG.

    Hitachi Zosen Inova AG history

    Inova was originally a department of the company “Gesellschaft der Ludwig von Roll’schen Eisenwerke” founded in 1823, the purpose was thermal waste treatment. Inova was founded in 1933 as “L. von Roll Bamag AG”.

    In 1960, Von Roll expanded to Germany and Japan, and in 1966 to France and Sweden, and 1975 to USA. Von Roll Environmental Technology Ltd was known as “Von Roll Inova Group”.

    In 2003, Von Roll Inova Group was acquired by the AE&E Group (Austrian Energy & Environment Group), a subsidiary representing about 40% of A-Tec Industries AG (http://www.atec-industries.com/). Both AE&E Group and A-Tec Industries AG went into bankruptcy proceedings. An overview of the complex bankruptcy and reconstruction proceedings can be found on the A-Tec Industries Wikipedia-page.

    AE&E Inova Holding AG filed for bankruptcy on December 3, 2010, and was acquired by Hitachi Zosen Corporation as of December 20, 2010.

    Read our report on Japan’s electronics industry and Hitachi:
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    Boehringer Ingelheim acquires SSP (エスエス製薬), acquiring remaining 40% for US$ 365 million

    Boehringer Ingelheim acquisition values SSP at approx US$ 900 million

    Boehringer Ingelheim acquires SSP stage-by-stage: 9.2% in 1996, 60% in 2001, 100% in 2010

    Boehringer Ingelheim acquires SSP (エスエス製薬株式会社), a Japanese OTC pharma company founded originally in 1765 as a pharmacy in Yaesu, Tokyo, starting with business cooperation, followed by staged investment over a period of five years, starting in 1995, followed by a Take-Over-Bid and delisting of SSP from the Tokyo Stock Exchange in 2010.

    SSP (エスエス製薬株式会社), founded in 1765

    History, and acquisition steps by Boehringer Ingelheim:

    • SSP (エスエス製薬株式会社) was founded in 1765 as a pharmacy in Yaesu, Tokyo
    • On 29 October 1927 the company was incorporated as (株)瓢箪屋薬房
    • In 1940 the company name was changed to (エスエス製薬株式会社)
    • 1969 IPO on the 2nd section of the Tokyo Stock Exchange
    • 1971 IPO on the 1st section of the Tokyo Stock Exchange
    • 1995-1996 Boehringer Ingelheim invests in SSP, and becomes largest share holder
    • 2001 Boehringer Ingelheim increases shareholding to above 50%
    • 15 February 2010 Boehringer Ingelheim Japan Investment GK (ベーリンガーインゲルハイム・ジャパン・インベストメント合同会社) issues a Take-Over-Bid (TOB), which is concluded on 15 April 2010, resulting in Boehringer Ingelheim Investment Japan acquiring a total of 93% of SSP shares.
    • 16 July 2010 SSP is delisted from Tokyo Stock Exchange
    • 1 October 2010 merger with Boehringer Ingelheim Japan Investment GK (ベーリンガーインゲルハイム・ジャパン・インベストメント合同会社)
    • 19 November 2010 merger with BI Nippon Invest GK (BIニッポンインベスト合同会社)
    • 19 November 2010 becomes subsidiary of Boehringer Ingelheim Japan KK (ベーリンガーインゲルハイムジャパン株式会社)
    • 1 January 2017 as part of a global asset swap of Boehringer Ingelheim with Sanofi, SSP becomes a subsidiary of the French pharmaceutical group Sanofi (サノフィ株式会社)

    Nippon Boehringer Ingelheim Co., Ltd. (ベーリンガーインゲルハイム ジャパン株式会社)

    Nippon Boehringer Ingelheim Co., Ltd. (ベーリンガーインゲルハイム ジャパン株式会社) was founded in 1961 as a subsidiary of the German Boehringer Ingelheim Group, which was founded in 1885 in Ingelheim am Rhein in 1885.

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    Sony Barcelona Tec factory sold to Ficosa International SA and Comsa Emte SL

    CSC Media Group acquired by SONY for 107 mill pounds, bringing 16 cable and satellite channels to SONY

    Sony Barcelona Tec technology center manufacturing LCD TV sets for Europe sold

    Sony Barcelona Tec acquired by Joint Venture between Spanish Companies Ficosa International SA and Comsa Emte SL

    Sony Barcelona Tec, the SONY Barcelona Technology Center was established in January 1973, and in August 2010 had about 1100 employees and was manufacturing LCD TVs for the European market. The site area is about 206,000 square meters, is located at Viladecavalls near Barcelona and can be seen here on Google Maps.

    With the sale of Sony Barcelona Tec the center is divided into two parts:

    • a manufacturing company whole owned and operated by Ficosa International SA
    • a development and engineering company owned by a joint venture between Ficosa International SA (50%) and Comsa Emte SL (50%).

    Ficosa International SA

    Ficosa International SA is an automobile parts company founded in 1949 and employing about 6800 people.

    Note: in 2014, Panasonic announced to acquire just under 50% of Ficosa for around US$ 275 million.

    Comsa Emte SL

    Comsa Emte SL is the second largest Spanish company in the engineering and infrastructure sector.

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