The value of Japanese mergers and acquisitions in 2005 rocketed to US$167.6bn, increasing 109% year-on-year and marking the largest dollar volume since 1999.
With 2,552 deals announced - representing a 23% increase and a fourth year of double-digit growth in deal count - Japan proved such a hot market for M&A last year that it far outpaced growth in the US, UK, and Australia.
With a staggeringly large - not to mention unprecedented - total transaction value of US$42.7bn, the major deal to close was of course Mitsubishi Tokyo Financial Group's acquisition of UFJ Holdings Inc. There was little surprise then when Japan's first hostile and open competing merger offer by a rival bank walked away with the prestigious title of Japan Deal of the Year at last night's ALB Japan Law Awards 2006.
The Awards, organised by Asian Legal Business magazine and now in its second year, was held at the Capitol Tokyu Hotel in Tokyo. A record attendance of more than 250 corporate lawyers, private practitioners, investment bankers, accountants and industry heads crammed into the hotel's ballroom to recognise excellence in the provision of legal services across the Japanese region in 2005.
The story for Japan in 2005 was the return to good health of the economy and this was reflected at the ALB Japan Law Awards 2006, which was broader in scope than last year with additional law firm categories as well as a number of in-house categories added to the flagship event.
The awards for legal excellence was spread across 27 categories in total, with recognition placed on the key transactions in Japan that took place in 2005 and the firms that acted on those deals.
With tables sold-out well in advance of the event, those lucky enough to be in attendance were eager to learn which way the judging panel had voted.
Mori Hamada & Matsumoto landed the prestigious role of Japanese legal adviser to MTFG on its record-breaking tie-up with UFJ, and it led the domestic heavyweight to the most number of trophies of any Japanese law firm.
Acting as US legal advisers on the other side of the MTFG-UFJ table, Simpson Thacher & Bartlett repeated its strong showing at last year's Japan Law Awards with five trophies. This included a repeat win for office head David Sneider in the International Dealmaker category.
Meanwhile the in-house team at Morgan Stanley - led by the well-respected Philip Quirk - was yet another Awards attendee to benefit from its participation on the mega-merger. It also repeated its 2005 win in the International Investment Bank category, helping it to a total of five trophy wins.
On the debt and equity capital markets front, issuance in Japan in 2005 mirrored the bullishness experienced in many other financial centres. Unfazed by rising energy prices and speculation of weaker US economic growth, global capital markets went about the business of raising a record amount of capital last year. And growth of the Nikkei 225 index also accelerated in the last half of calendar 2005, finally regaining the ¥16,400 level for the first time since late 2000.
Lead roles on the Fufoku Mutual Life Insurance Co transaction and the RHJ International transaction respectively led Nagashima Ohno & Tsunematsu and Anderson Mori & Tomotsune to wins in the Debt Market and Equity Market categories.
And among some the new categories to feature this year, there were outstanding performances from firms such as Matsuo & Kosugi - which won Dispute Resolution Law Firm of the Year and Insolvency Law Firm of the Year (with name partner Tasuku Matsuo also a finalist for the Lifetime Achievement Award) - while the legal guys at IBM Japan were voted TMT In-House Team of the Year and overall Japan In-House Team of the Year.
ALB magazine would like to congratulate all of the winners and finalists at the ALB Japan Law Awards 2006. The finalists in each deal category were assessed against a range of criteria including deal value, complexity, number of parties involved, innovative deal structure, timeframe for completion and significance to the market. Meanwhile, finalists in each firm category were recognised for their outstanding client service as well as their ability to combine rigorous analysis with astute judgment to give clients a competitive edge.
For photos or further details, please contact Stephen Mulrenan at stephen.mulrenan@keymedia.com.au or on DD: (61) 2 8437 4739.
The full list of winners and categories can be seen at http://www.albawards.com/japan_06/