Mitsubishi UFJ Lease to buy Hitachi Capital in deal worth ¥294 bil

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Japan's Mitsubishi UFJ Lease says it will buy smaller rival Hitachi Capital Corp in a deal calculated at 294 billion yen ($2.8 billion).

The two companies formed a capital alliance in 2016 and had been negotiating a merger since, they said in a joint statement.

The deal would help the new company, to be set up in April, to compete with global competitors, they said.

Mitsubishi UFJ Lease would give 571 million shares to shareholders of Hitachi Capital, making the deal worth about 294 billion yen.

Hitachi Capital has a market value of 319 billion yen based on Thursday's close.

The two companies will have assets worth about 10 trillion yen and almost 10,000 employees, they said.

Their combined revenue will be around 1.4 trillion yen ($13.3 billion), a Reuters calculation showed.

© Thomson Reuters 2020.

©2020 GPlusMedia Inc.

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Have to soak up useless assets that no foreign investor wants to buy.

After the 1990s economic bubble collapse, most of the foreign investors, with the help of vulture funds, could have easily bought all of Japanese private sectors. However, Zai-techs have created insane, dumb speculative bubbles that do not attribute a profitable reality for most of their portfolios. This is why foreign investors didn't invest in Japan much, hence the Lost Decades continue unabated for many decades more and ongoing.

The only ones, who are willing to buy those useless Japanese assets, are the Chinese. The Chinese investors only do it for political reasons, and this is why most of Japan scare of the Chinese influence for a good reason. Not one of any racist, far-right organization in Japan, even right-wing Yakuzas, dare to attack any Chinese or burn any Chinatown. Japan's Lost Decades can easily end tomorrow if Japanese politicians remove all barriers for foreign investments. The Chinese investors are willing to save Japan's economy in a heartbeat, for a political price. Of course, the USA won't ever allow Japan to fall into Chinese domination.

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