SUMMARY
Uzbekistan and the United States have agreed to further expand and deepen their strategic partnership. This agreement takes bilateral relations to a new level, covering not only political dialogue, but also a wide range of areas including economics, trade, investment, and security. It is expected to further enhance Uzbekistan’s credibility in the international community and further improve the external business environment.
Trust” Brings Capital: Uzbekistan M&A Decisions Accelerated by Stronger Ties with the U.S.
So far, we have introduced business opportunities in two major concrete areas in Uzbekistan: “natural resources” and “energy. This news is a definitive sign that the most important elements underlying them all – ” credibility of the country” and “stability of the business environment” – will be dramatically improved.
Mitigating Geopolitical Risk: The Weight of Strategic Partnerships
In international business, especially in M&A, the political stability and international relations of the target country are core factors that influence investment decisions. This deepening of the strategic partnership with the United States sends a strong message to the world about Uzbekistan as follows
- Establishing its position in the international community: as a major power in Central Asia, Uzbekistan has clearly established itself as a reliable partner with the West at its center.
- Commitment to long-term political and economic stability: These agreements are not short-term, but based on the country’s medium- to long-term development strategy.
- Increased transparency of business rules: It is expected that the introduction of investor protection and business practices in line with international standards will be further promoted.
This will have the effect of significantly reducing geopolitical risks anduncertainty in the business environment, which are the biggest concerns for Japanese companies when considering M&A.
Reasons why this is the “most advantageous timing” for Japanese companies to enter the M&A market
With such a national infrastructure in place, Japanese firms entering the market through M&A now has the greatest advantage of gaining a “first mover advantage” over firms from other countries.
- Advantage of getting in before price competition: Before the market is fully mature and many international companies rush in, there is a high possibility of acquiring a high-quality local company on relatively favorable terms.
- Building a pipeline of trust: By entering at the very time when Uzbekistan is building trust in the international community, you will be strongly perceived by the local government and companies as a “reliable Japanese partner” and have a great opportunity to build good, long-term relationships.
- Broad Opportunities Across Sectors: Because of the broad scope of the agreement, opportunities for collaboration are expanding not only in mineral resources andenergy, which we have discussed, but also in all growth sectors, including agribusiness, logistics, infrastructure development, IT and digitalization, and more.
Proposed Specific M&A Approach
- First step: Information gathering
- We gather information on local blue-chip companies and companies that are exploring M&A opportunities due to financial difficulties or other reasons.
- Second step: Partner selection
- Consider joint venture (JV) -style acquisitions that combine Japanese technology and capital with local networks and know-how.
- Third step: Execution
- Conduct detailed due diligence with the support of local legal, accounting, and taxation experts.
Conclusion
- Strengthening the strategic alliance with the U.S. is an event that will determine Uzbekistan’s status as a “business appropriate country.
- This reduces “environmental risk,” the biggest concern for Japanese companies considering M&A.
- Now,” before the market completely heats up, is the last chance to acquire the best deals and build strong relationships of trust.
Uzbekistan is a rare growth market where the foundations of the business environment are rapidly being laid with national commitment, and with a strategic approach to M&A, there is no way to miss out on this huge swell.
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