Toshiba may be about to make history for the second time. Foreign buyout groups may reportedly offer up to ￥3tn ($22bn) for the troubled Japanese conglomerate. If a deal goes through, it would be Japan’s biggest takeover. The second largest would then be Bain’s purchase of Toshiba’s memory chip unit four years ago.
The weakness of the yen increases foreign buying power. This should make foreign takeovers easier. They have been scarce in Japan, despite low valuations stemming from conglomerate discounts. Cultural hurdles and government reluctance are to blame.
Buyout offers are hardly new to Toshiba. In the past few years, the group is believed to have walked away from several generous approaches. This has been a flash point for investors. Showdowns between Toshiba and foreign shareholders, many of them activists, have been one result.