Marubeni Corporation, a Japanese trading conglomerate backed by Berkshire Hathaway, sees a stronger yen as a key enabler for its overseas expansion plans. The company believes currency appreciation will enhance purchasing power for international acquisitions.
Masayuki Daimon, President of Marubeni, expressed optimism about the yen's rise during an interview, stating, "We want the yen to strengthen significantly." This perspective contrasts sharply with the traditional view among Japanese policymakers and executives, who often favored a weaker yen to boost export competitiveness and inflate the value of overseas earnings in yen terms.
As many Japanese firms, including Marubeni, have relocated production overseas over the past decades, the economic benefits of a depreciating yen have diminished. This shift was partly driven by the yen's prolonged strength from the 1990s to the early 2010s. The yen hit a 40-year low in late July, prompting joint intervention by the U.S. and Japan for the first time in over 25 years to support the currency. While the dollar-yen rate recently traded at 159.26, it had fallen as low as 163.98 in July.
Daimon acknowledged that a weaker yen could temporarily lift Marubeni's profits, but he emphasized, "A stronger domestic currency is more critical for smoother overseas investment and business expansion." He also noted that stable exchange rates are preferable, as volatile fluctuations complicate corporate planning.
Marubeni Corp (8002) recently raised its investment plan, targeting 1.95 trillion yen (approximately $12.23 billion) in capital expenditure and other investments over the three fiscal years ending March 2028. This includes about $5 billion earmarked for new investments during the period. The company holds a 10.3% stake owned by a Berkshire Hathaway subsidiary.
The conglomerate plans to expand its Helena Agri-Enterprises unit, the second-largest U.S. agricultural retailer, through acquisitions to narrow the gap with industry leader Nutrien's agricultural solutions division. Daimon stated that if attractive opportunities arise in Helena or other businesses, the company could invest over 100 billion yen ($627 million) in a single deal.
Beyond agricultural retail, Daimon identified growth opportunities in several sectors, including aircraft parts and maintenance, pharmaceutical distribution, used-car finance and fleet management in the U.S., renewable energy trading, food marketing, IT services, and select natural resources. In June, Marubeni acquired Dallas-based natural gas developer EagleRidge Energy II to expand its gas business, meeting rising electricity demand from AI data centers. The company is also making smaller, long-term investments, such as in Italy's D-Orbit (satellite deployment services) and Estonia's Skeleton (ultra-fast charging storage devices).
While pursuing new investments, Marubeni is divesting businesses with limited growth potential to maintain capital discipline. Daimon noted that the company is selling assets in its power generation segment, which are constrained by contract obligations and have limited growth prospects. He added that Marubeni is adopting a capital allocation approach similar to Berkshire Hathaway, prioritizing funds for businesses with competitive advantages and sustainable growth, and reinvesting the profits generated from those operations.
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