Berkeley Boosts Stake in Mitsubishi, Japanese Stocks Rise 2.2%

Berkeley has continued to increase its holdings in Japan's "five major trading companies," becoming a major shareholder. This move is seen as a signal of confidence in the Japanese market. Previously, Berkeley had increased its stake in another Japanese trading company, Mitsubishi Corporation, to the same level. Following the announcement, the stock price of Mitsubishi Corporation rose by 2.2%, and the stock prices of other major trading companies also rose.

Berkeley has deepened its bet on Japan's major comprehensive trading companies by increasing its stake in Mitsubishi Corporation to the level of a "major shareholder." According to a statement released by Mitsubishi Corporation on Monday, Berkeley, led by the chairman, has increased its stake in the company (calculated by voting rights) to more than 10%. The statement also noted that Berkeley may consider further increasing its holdings.

This move is seen as the latest signal of confidence in the Japanese market. Previously, Berkeley had increased its stake in another major trading company, Mitsubishi Corporation, to more than the 10% threshold. Following the announcement, the market reacted positively. Mitsubishi Corporation's stock price, which had been rising in the morning session, rose further, peaking at 2.2% before falling back to 1.75%. The stock prices of other major trading companies, including Mitsubishi Corporation, Itochu Corporation, Marubeni Corporation, and Sumitomo Corporation, also rose on Monday.

This increase marks a subtle shift in Berkeley's investment strategy. The chairman first disclosed Berkeley's investment in Japan's top five trading companies (known as "general trading companies") in 2020. According to the annual investor letter released in February, Berkeley initially planned to keep its stake in these companies below 10%. However, the letter mentioned that these Japanese companies had agreed to "moderately" relax this holding limit. This change paved the way for Berkeley to break the 10% threshold and become a "major shareholder," allowing it to participate more deeply in the future development of these Japanese business giants.

Analysts believe that Berkeley's continued increase highlights the unique business value of Japan's comprehensive trading companies. These companies' highly diversified business structures make them more resilient than their overseas counterparts in the face of volatile commodity prices. In addition, these companies have placed more emphasis on shareholder returns in recent years, further enhancing their investment appeal.