It would be a bargain for the history books. CVC Capital Partners, a British private equity firm, plans to acquire Toshiba for $ 20 billion. If the deal goes through, it will be the largest leveraged acquisition ever made in Japan.
But behind the scenes, the bidding war is approaching the traditional conglomerate with its strategically important business branches such as the nuclear industry and semiconductor investments. Investment firms KKR from the USA and Brookfield Asset Management from Canada also appear to be considering their own offers.
Private equity firms depend on the long-term potential of the group. The search for investments is increasingly leading them to Japan, even if it is just under a third of private market transactions in Asia. “The industry is still dependent on a lot of money that has to be invested,” says Samuel Troup, analyst at Credit Suisse. Dry powder – money that has already been talked about but not yet invested – was about $ 477 billion to the funds with a focus on Asia at the end of 2020.
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