FOREIGN DIRECT INVESTMENT IN THE UNITED STATES 1983 Transactions ^ T E S O* * U.S. DEPARTMENT OF COMMERCE International Trade Administration September 1984 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FOREIGN DIRECT INVESTMENT IN THE UNITED STATES 1983 Transactions U.S. DEPARTMENT OF COMMERCE Office of Trade & Investment Analysis International Trade Administration September 19 84 For sale by the Superintendent of Documents. U.S. Government Printing Office, Washington, D.C. 20402 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Preface This report covering 1983 is one of an series of annual publications on foreign direct investment transactions in the United States. These reports have been prepared by the Office of Trade and Investment Analysis and its predecessors, the Office of International Investment and the Office of Foreign Investment in the Un i ted States. The transactions listings in this publication are arranged by primary industry of the U.S. company owned/controlled by foreign investors (Appendix A), and by source country (Appendix B). Later this year, the Office of Trade & Investment Analysis will publish a comprehensive set of listings of all transactions identified during the period 1974-83. This listing will be arranged by source country, industry of U.S. company, and state location. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FOREIGN DIRECT INVESTMENT TRANSACTIONS IN THE UNITED STATES 1983 TRANSACTIONS Page INTRODUCTION.................................................................. 1 OVERVIEW OF FOREIGN DIRECT INVESTMENT IN THE UNITED STATES, 1983 .................................................4 INVESTMENT BY SOURCE COUNTRY................. .............................5 INVESTMENT BY INDUSTRY.....................................................11 MODE OF INVESTMENT TRANSACTION...........................................25 LOCATION OF INVESTMENT BY STATE......................................... 26 MAJOR SECTORAL DEVELOPMENTS.............................................. 30 PENDING TRANSACTIONS.......................................................39 APPENDICES A: Listing of Transactions by Standard Industrial Classification (SIC)..............42 B: Listing of Transactions by Source Country.............................................. 66 C: Description of Key Terms.............................................85 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis List of Summary Tables Page Table I Source Countries - Completed Cases - 1983............. 7 Table II Number of Identified Completed Transactions, by Source Country, 1980 - 1983.............................. 10 Table III Direct Investment Distribution by Industry Subsector of U.S. Affiliate - Completed Transactions - 1983...12 Table IV Number of Completed Transactions by Industry Sector, 1980 - 1983..................................................16 Table V Foreign Direct Investments by Country of Foreign Origin According to Investments Mode, 1983........... 25 Table VI State Location of Foreign Ventures, 1983..............27 Table VII Source Countries - Pending Cases - 1983....... ....... 40 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis List of Figures Page Figure 1 Total Number of Foreign Direct Investment Transactions, 1977 - 1983................................ 4 Figure 2 Number of Investments by Major Source Country, 1983............................................................5 Figure 3 Number of Investments by Industry, 1983............... 1 1 Figure 4 Number of Investments by State, 1983.................. 26 Figure 5 Number of Investments in the Oil and Gas Extraction Industry, 1979 - 83 .........................31 Figure 6 Number of Investments in Food Industry, 1979 - 83...32 Figure 7 Number of Investments in Chemical Industry, 1979 - 83.................................................... 33 Figure 8 Number of Investments in Petroleum Refining and Related Products Industry, 1979-83................34 Figure 9 Number of Investments in Electrical and Electronics Industry, 1979 - 83....................... 35 Figure 10 Number of Investments in Financial Sector, .. 1979 - 83....................................................36 Figure 11 Number of Investments in Real Property Sector, 1979 - 1983 ..................................................38 Figure 12 Number of Investments, Pending, 1983..................39 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis INTRODUCTION The purpose of this report is to identify specific foreign direct investment transactions in the United States during 1983, analyze recent trends in such investments, and provide data and related information on significant transactions. The report incorporates information obtained in carrying out responsibilities assigned to the Secretary of Commerce by Executive Order 11858, dated May 7, 1975. Specifically, the Secretary of Commerce is responsible for "the obtainment, consolidation, and analysis of information on foreign investment in the United States." Foreign direct investment, as used in this report, means the direct or indirect ownership of 10 percent or more of the voting securities of an incorporated business enterprise, or an equivalent interest in an unincorporated business enterprise, or a 10 percent or more interest in real property transactions. Transactions values, as used in this report, refer to the reported total cost of the investment — or the estimated proportion of the investment if a joint venture — regardless of the source or timing of funds. These values are intended to identify the relative size of various transactions and, in the aggregate, indicate trends in investment activity. The data and other information contained in this report represent a compilation and distillation of material from genera I Iy-avaiIabIe public sources, transaction participants, and miscellaneous contacts. A major portion of the data and information was derived from public secondary sources such as newspapers, magazines, and business and trade journals, as well as from the public files of Federal regulatory agencies. The primary Federal agency sources for publicly available data are the Securities and Exchange Commission (SEC), the Federal Trade Commission (FTC), and the Federal Reserve Board (FRB). Much of the data obtained from Federal regulatory agencies originated from report series that differ widely in frequency and content. These reports are, in most cases, filed in response to general regulatory responsibilities of the various agencies, rather than for the specific purpose of providing data on foreign investment. Other investment transaction and related data collected by the federal government are not available for this report, since much of that information is business confidential and is collected strictly to facilitate federal regulatory responsibilities or to provide aggregate data for macro-economic analysis purposes. 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis It should be noted that the aggregate data in this report are not strictly comparable to the other major statistical series on foreign direct investment in the United States published by the Commerce Department's Bureau of Economic Analysis (BEA). The BEA aggregate dollar value data on new investments, published annually since 1979, are based on individual firm responses to mandatory reporting requirements (including strict confidentiality provisions protecting the identity of individual reporters). These BEA data are thus liKely to provide more comprehensive coverage for the types of transactions included in BEA's reporting requirements. On the other hand, the data in this report not only identify individual transactions, but include a broader range of investment transactions than the BEA data — for instance, plant expansions, equity increases, and certain types of real estate investments.’ Consequently, the two data series are not comparable, although there has been significant correlation in the movement of the overall series over the last several years. While every effort was made to verify the information obtained from public sources, the U.S. Department of Commerce is not responsible for any inaccuracies or gaps in information presented in this report. Transaction values for many investments are not publicly available. Nevertheless, experience has shown that value and other data for the large majority of major investments is identified in the monitoring process. Copies of this report are available from the Office of Trade and Investment Analysis, Room 2217, International Trade Administration, U.S. Department of Commerce, Washington, D.C. 20230, and from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Related preliminary data published by the Department of Commerce's Bureau of Economic Analysis (BEA) confirms this decline in direct investment activity. (See Introduction for discussion of differences between BEA data and that presented in this publication.) The BEA data show that the number of investment acquisitions and establishment of new businesses declined from 1108 in 1982 to 629 in 1983, while investment outlays dropped from $10.8 billion to $7.0 billion. These 1982 figures in turn reflected