(Bloomberg) -- Elliott Management Corp. buying up a sizable stake in Sumitomo Corp. is the latest in a string of Japanese deals for the firm, and reflects the growing influence of activist investors in the East Asian country. 

Elliott has built a “large” holding in Sumitomo after investing “several tens of billions of yen” in the trading house backed by Warren Buffett, Bloomberg News reported over the weekend. Founded by billionaire Paul Singer, Elliott also recently invested in developer Mitsui Fudosan Co., after previously targeting Toshiba Corp., SoftBank Group Corp. and Dai Nippon Printing Co.

Activist investor campaigns are becoming more commonplace as the government and institutions such as the Tokyo Stock Exchange encourage companies to better manage balance sheets and boost shareholder returns.

“Before, activist investors weren’t very successful, as companies and entrepreneurs were quite uncomfortable dealing with them,” said Jeff Acton, a partner at BDA Partners in Tokyo. “However, the tone has changed and activists are having a more constructive, more gentle approach. That’s helping drive the success rate for their campaigns, and more deals are getting done.”

Among recent activist campaigns, Japan’s Seven & i Holdings Co. — under pressure from activist investor ValueAct Capital Management — is considering a listing of Ito-Yokado supermarket chain and eventually splitting it off from the more profitable and faster-growing 7-Eleven franchise.

Toshiba is another, taken private in September in a ¥2 trillion ($12.9 billion) buyout, one of the biggest of last year, after also coming under pressure. 

“It may be an opportune time for activist investors in Japan as they put pressure on Japanese corporates,” said Akio Katsuragi, co-founder of Crosspoint Advisors in Tokyo. “In Japan, activists were generally viewed as enemies of the companies with their goal to make short-term profits. These days, some of the activists are offering ideas that may benefit other shareholders.”   

The rise in activism comes amid a boom in dealmaking, with the volume of mergers and acquisitions involving Japanese companies climbing 30% to about $145 billion over the past 12 months, turning the country into a hotspot, data compiled by Bloomberg show. The yen has weakened over 12% in that period, at one point Monday falling past 160 per dollar for the first time since 1990. 

That hasn’t stopped some from casting out overseas. Tokyo-based Renesas Electronics Corp. in February agreed to buy software firm Altium Ltd. for A$9.1 billion ($6 billion) — the biggest-ever acquisition of an Australian-listed company by a Japanese buyer. Sekisui House Ltd. expanded in the US by snapping up builder MDC Holdings Inc. for $4.9 billion. 

“Dealmaking activity in Japan is increasing — Japanese companies have piled up abundant cash,” said Katsuragi. “Organic business growth is tough to do in Japan as the population is shrinking. They need to grow via acquisitions both domestically and internationally.” 

A major potential deal involves Nippon Steel Corp., which wants to buy United States Steel Corp. in a move that would create the world’s second largest steel company. That plan, however, is facing strong opposition in the US. 

“Japan is going through a phase in which companies, regulators and investors are focused on improving shareholder returns and corporate governance,” BDA’s Acton said. “That’s a big driver for M&A. The current dealmaking boom we’re seeing in Japan is likely just the beginning of a golden age for M&A in the next 5 to 10 years.”

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