Citigroup Sees Japanese Companies Resuming Acquisitions Overseas

Citigroup Inc. said Japanese companies will resume takeovers abroad as they adjust to a weaker yen and the shrinking population continues to limit business expansion at home.

“Japan will see signs of a recovery in cross-border acquisitions later this year, based on the pipeline of deals we’re working on now,” Yuichi Jimbo, head of investment banking at Citigroup Global Capital Markets Japan Inc., said in Tokyo today. “We may be able to announce some deals.”

Mergers and acquisitions by Japanese firms abroad have fallen to $10.6 billion this year from a record $112 billion for all of 2012, data compiled by Bloomberg show. The yen has weakened about 10 percent against the dollar this year, making it more costly for companies to make takeovers overseas.

Japanese firms operating in the pharmaceutical, natural resource and consumer industries are among those that continue to go abroad for growth, Jimbo said.