This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Deal: Japan's Prime Minister Touts his Policy to U.S. Dealmakers

Stocks in this article: AMAT

NEW YORK ( The Deal) -- As Japanese Prime Minister Shinzo Abe prepares to implement the "third arrow" of his economic growth policies, signs of U.S. interest in Japanese deal targets are emerging.

Speaking late on Wednesday, Sept. 25, at the New York Stock Exchange, Abe pledged to implement the final part of his policies -- structural change needed for sustainable growth. "As soon as I return I will be firing the next arrow: a bold tax reduction to stimulate investment, so Japan will be in full force again," he said. The first two "arrows" of what has been dubbed "Abenomics" have comprised massive monetary and fiscal stimulus programs that have triggered a 20% fall in the yen and a 60% jump in the Nikkei over the past year.

Abe's speech at the exchange came amid a rare foreign investment in Japan: California-based chip manufacturing equipment provider Applied Materials (AMAT) announced Tuesday a takeover of Japan's Tokyo Electron, in an all-stock deal valued at $9.4 billion.

The acquisition is the second-biggest takeover of a Japanese company by an American concern on record, behind Citigroup's (C) $13.9 billion acquisition of Nikko Cordial Securities in 2007.

Abe said structural change would include measures to encourage higher female participation in the workforce, such as drastically boosting childcare provisions. He also urged America to adopt Japanese technology, which he claimed could save resources and improve efficiency. For example, he noted that a Japanese bullet train could cut travel time between New York and Washington to less than an hour.

Japan notched 3.8% annualized growth in the second quarter of the year, according to Japan's Cabinet Office, beating its G-7 peers. Business confidence is also rebounding: the Ministry of Finance's third-quarter business survey index reached its highest level this month since 2004, when the survey began.

Yet market volatility and currency appreciation triggered by Abenomics has also quashed outbound deal making.

Japanese dealmakers, traditionally the leading foreign acquirers of U.S. assets, have shunned M&A opportunities in the world's largest economy: for the year to date, Japanese acquisitions of U.S. targets have fallen 75% by total value to $6.5 billion and 33% by volume to 85 deals, according to Dealogic.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs