What are the foreign acquisition funds targeting? Pay attention to Japan's business restructuring stocks, such as Hitachi Ltd. and Bridgestone

Foreign acquisition funds are revitalizing business investment in Japan. On the afternoon of November 17th, a fund managed by the U.S. company Apollo Global Management announced the acquisition of a subsidiary of its automotive parts company. $Panasonic Holdings (6752.JP)$The sale amount is estimated to be several hundred billion yen. Panasonic is reviewing its non-core business and this subsidiary sale is part of that. The decision to sell was well receivedAfter the announcement, Panasonic's stock price soared and closed 5.50% higher than the previous day's closing price. The next business day also saw a consecutive daily high, closing with a 4.98% increase.

Sales and retreat decisions also had a strong impact on stock prices.
After the COVID-19 pandemic, the demand for business sales and retreats by companies increased, and the movements of foreign funds have become more prominent since around 2022. There have also been cases where the sale of subsidiaries had a significant impact on the stock prices of parent companies. On April 28th, 2022, KKR of the United States... $Hitachi (6501.JP)$The subsidiary announced that it will acquire Moomoo Inc. through a tender offer (public stock acquisition), and the stock price of Hitachi Ltd. on the following business day, May 2nd, rose 6.72% compared to the previous day. $Hitachi Transport System (9086.JP)$Low cost and the perception of undervaluation continue to drive buying in Japan.According to financial information company Refinitiv, while the total value of M&A transactions by funds as buyers decreased by nearly 40% worldwide in 2022, it increased by over 40% in Japan, reaching approximately $24 billion (approximately 3 trillion yen)..

Pay attention to stocks involved in business reorganization.
While it may be difficult to anticipate the stocks related to tender offers, it seems like a solid strategy to monitor stocks focusing on business reorganization. Hitachi Ltd, which had dissolved all of its listed subsidiaries as of 2009, reached its highest post-listing price in 35 years this year. Although the listed subsidiaries no longer exist, there are high expectations for further internal reorganization, structural reforms, and their consequent improvement in corporate value. $Bridgestone (5108.JP)$They have set the clear distinction between what to do and what not to do as a challenge in their medium-term business plan, and have narrowed down their focus on core businesses. $Seven & i Holdings (3382.JP)$They are accelerating reorganization in sectors such as financial business and superstore business.They are accelerating reorganization.On November 30, they announced a share buyback of 110 billion yen, a stock split, and the acquisition of the operating company of "Seven-Eleven" in Australia, causing the stock price to increase by 7.7% on December 1 compared to the previous day.

Related stocks: $Seibu Holdings (9024.JP)$, $J Front Retailing (3086.JP)$