The appointment of a US firm as a key adviser in the largest-ever foreign buy-out of a Japanese company has been heralded a major breakthrough for international firms operating in the country.
Paul Hastings Janofsky & Walker is advising GE Capital in the $6.9m acquisition of the equipment and car-leasing parts of Japan Leasing – an affiliate of the bankrupt Long-Term Credit Bank of Japan.
The US firm, which has a two-partner office in Japan, was one of the first firms to take advantage of the joint enterprise agreements, which permit joint enterprises between foreign and local firms.
Paul Hastings, which is linked to Taiyo Law Office, advised on the international aspects of the deal. Local firm Nagashima & Ohno is advising GE Capital on domestic issues.
Lawyers at Paul Hastings' Japan office said they were unable to comment on the transaction as it had not yet been completed.
UK lawyers in Japan predict a growth in similar work, partly due to the opening-up of the Japanese market and partly due to the weakness of the yen.
Mark Keeler, a partner at Freshfields' Japanese office, said: "There is a lot of work at the moment in Japan. Any number of foreign companies are investing here."
Alan Kitchen, who heads Ashurst Morris Crisp's Tokyo team, added: "We are currently advising on a number of acquisitions. I believe there will be a growing role for foreign law firms in Japan."