Don’t forget Japan

Dear Madam,

The article in your March issue on international acquisitions by Indian companies, entitled Clear Skies Ahead?, has opened my eyes to the sheer scale of the actual and potential investing power of Indian companies. Although I had a vague understanding that a considerable number of Indian companies were conducting international acquisitions, I was most surprised to learn that the volume of India-related outbound M&A transactions in 2010 could exceed the previous record of US$18.2 billion, which was set in 2008. I also read with interest your astute analysis of the domestic and overseas regulatory issues that are faced by Indian companies undertaking international M&A deals.

Many Japanese people, including myself, are ignorant about outbound M&A trends in India. One reason for this ignorance could be that there are limited sources of India-focused business and legal information that are accessible to us in Japan. Needless to say, your publication is an invaluable source of information on the Indian market for us.

Another reason for the lack of knowledge about these issues in Japan is that there are only a few Indian companies that currently target the Japanese M&A market. Your article reports that Indian companies are tempted by the natural resources available in the Asia-Pacific region. Unfortunately, Japan has scarce natural resources. What is does have, however, is abundant advanced technology which should also be attractive to Indian acquirers. I, as a Japanese lawyer, sincerely hope that Indian companies will look towards the Japanese market, as well as other Asian markets, when considering their next overseas acquisitions.

I am looking forward to many more mind-refreshing reports from your publication.

Ryo Kotoura
Attorney-at-law
Anderson Mori & Tomotsune
Tokyo