InsideJapan News Network

Japanese companies are increasingly acquiring foreign businesses in an effort to expand their global presence and reach, new trends show.

Japanese firms spent a total of $70 billion (£42 billion) on foreign acquisitions last year, capitalising on substantial cash reserves, a strong yen and attractive valuations, reports Reuters.

A number of Japanese multinationals, who have already enjoyed a dominant market share domestically, are increasingly eager to replicate that kind of success overseas.

One such firm, Recruit C - the largest recruitment company in Japan - has begun to make acquisitions in foreign markets such as the US and Europe.

In January, Recruit bought Advantage Resourcing America and Advantage Resourcing Europe for $410 million - its third foreign deal since 2010.

Hitoshi Motohara, managing executive of Recruit Co, told Reuters: "We want to keep growing. If there is a good opportunity, we want to conduct more acquisitions in the US."

Leading Japanese consumer electronics firm Sony Corporation recently announced losses of 159 billion yen (£1.3 billion in the third quarter of 2011.

Written by Mark Smith