TOKYO, Jan 13: Japanese companies’ acquisitions of foreign assets last year hit their highest level since 1990, as they switched gears away from restructuring towards growth, investment bank Nomura said in a semi-annual report on deal-making.

Japanese firms retrenched after an asset bubble popped in the early 1990s, but as the economy shows signs of recovery they are once again starting to look abroad.

Deals aimed at strengthening existing businesses increased 11.9pc year-on-year, while intra-group restructuring fell by 0.7pc, said Nomura Holdings Inc., the top financial adviser for M&A deals involving Japanese companies during 2005 according to data provider Thomson Financial.

“There is a strong need for continuous strengthening of their businesses,” Nomura said of Japanese companies. “As the reluctance to use M&As that has been seen in the past appears to be gradually easing, M&A activity in Japan should remain strong.”—Reuters