Guest Speaker: Mr. Yasushi Shingai, Executive Vice President, Japan Tobacco Inc.
On July 14th, Professor Tomonori Ito's Applied Corporate Finance class welcomed Mr. Yasushi Shingai, Executive Vice President of Japan Tobacco Inc., as a guest speaker. Mr. Shingai was the Executive Vice President of Japan Tobacco International at the time Japan Tobacco acquired Gallaher of UK in 2007, still the biggest ever cross-border M&A for a Japanese company. He was the chief negotiator of the highly publicized transaction and one of the protagonists of the case "Japan Tobacco : Domestic Giant Going Global (A) (B)" authored by Professor Ito.
Following an hour-long discussion of the case in which students talked about the pricing of the transaction and the reasons for the success of the post-merger integration of Gallaher, Mr. Shingai stayed on for a one-hour Q&A session with the students. He touched on points such as how JT managed to fend off other competitors to acquire Gallaher, how large the synergies of the acquisition had been expected to be, the difficulty of integration, and why JT has been successful in developing strong leaders. It was a truly worthwhile session in which students learned much about how to succeed in M&As.