Volkswagen has applied to delist from the Tokyo Stock Exchange, citing low trading volume and its plans to also delist from some European exchanges. This continues the TSE’s trend of losing (and not being able to replace, at least for the time being) overseas listings. There will now be only 25 foreign companies listed on the TSE. 1991 was the peak year for overseas listings when there were over 100. Among the remaining American firms with listings the last time I checked are AFLAC, AIG, Bank of America, Boeing, Dow Chemical, JP Morgan Chase and Merrill Lynch.
Next January, the Tokyo Stock Exchange will actually gain a new listing, as Citigroup plans to list shares as part of its broader Japan expansion strategy in conjunction with its acquisition of Nikko Cordial. In fact, Citi is planning a share exchange for the remaining 32% stake of Nikko Cordial that it doesn’t already own, in effect making it the first company to take part in a triangular merger, an acquisition method which has only been allowed since May of this year. Now that Citi has broken the ice, there’s speculation more triangular mergers are on the horizon.