In an attempt to expand its merger advisory and equity underwriting business in Japan, JPMorgan Chase has hired Hideki Somemiya of Merrill Lynch, Japan Securities – reported Bloomberg.
Majority of the technology companies in Japan are offloading their non-profitable assets to invest in their core businesses, as they struggle to increase returns. Yuichi Ishida, an analyst at Tokyo-based Mizuho Investors Securities, said: “Japanese electric and technology companies have a strong motivation to raise cash to boost capital after job cuts and net losses. We will see more mergers and acquisitions in the industry as they restructure.”
Earlier, JPMorgan acted as the underwriter of Japanese equity and equity linked transaction, arranging Sumitomo Mitsui Financial Group’s sale of $9.6 billion in shares.
