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Japanese companies eye restructuring, mergers for growth

About half of Japanese firms are contemplating business reviews and restructurings, including acquisitions, according to a Reuters’ survey. This trend reflects a broader push for better governance in the world’s third-largest economy, with the Tokyo stock market reaching its highest in 30 years due to anticipated improvements in shareholder returns. The Tokyo Stock Exchange, addressing firms trading below book value, is encouraging companies to rethink their capital use, listing those with proactive plans. The survey of 104 companies showed nearly one third are considering mergers and acquisitions, and a quarter are looking at divesting non-core segments. This strategic shift, highlighted in the Nikkei Research-conducted survey, aligns with Japan’s aim to boost household investment income and expand tax-free investment opportunities, leading to an increased focus on dividends, stock buybacks, or splits.


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