FOREIGN DIRECT INVESTMENT IN THE UNITED STATES 1987 Transactions /'w 'N £ W o o -------2 ^ ------- ^ T E S & ^ U.S. DEPARTMENT OF COMMERCE International Trade Administration December 1988 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FOREIGN DIRECT INVESTMENT IN THE UNITED STATES 1987 Transactions U.S. DEPARTMENT OF COMMERCE International Trade Administration Trade Information and Analysis Office of Trade & Investment Analysis December 1988 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FW alt fcy th» SapTinttnibwf of DrawM* UA OownmiX Printiig Qflh mmtun&m, D C. 20402 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis PREFACE This report covering 1987 is one of an annual series of publications on foreign direct investment transactions in the United States. The reports have been prepared by the Office of Trade and Investment Analysis and its predecessor units, the Office of International Investment and the Office of Foreign Investment in the United States. Listings of individual foreign direct investment transactions in the United States are especially useful to government and private sector analysts needing information on the investment activities of prominent foreign firms and individuals in the United States. This publication is the most comprehensive of its kind— it incorporates information from a wide variety of public sources and efforts are made to verify the timing and terms of completed transactions. The transactions listings are arranged by the primary industrial classification of the U.S. company owned/controlled by foreign investors (Appendix A), by source country of the foreign investors (Appendix B), and by state location of the foreign investment (Appendi x C). iii Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE OF CONTENTS Page INTRODUCTION .................................................... ^ OVERVIEW OF FOREIGN DIRECT INVESTMENT IN THE UNITED STATES, 1987 ................................... 3 INVESTMENT BY SOURCE COUNTRY ................................... 5 THE MEGADEALS.................................................... 10 INVESTMENT BY INDUSTRY (SIC) .................................... 13 MODE OF INVESTMENT TRANSACTION ................................. 29 LOCATION OF INVESTMENT BY STATE ........ ........................ 32 MAJOR SECTORAL DEVELOPMENTS .................................... 37 APPENDIX A: LISTING OF TRANSACTIONS BY STANDARD INDUSTRIAL CLASSIFICATION (SIC) ...... 81 APPENDIX B: LISTING OF TRANSACTIONS BY SOURCE COUNTRY .................................. 106 APPENDIX C: LISTING OF TRANSACTIONS BY STATE LOCATION .................................. 131 APPENDIX D: DESCRIPTION OF KEY TERMS, SOURCE COUNTRY ABBREVIATIONS, SIC REFERENCE TABLE, INVESTMENT TYPES REFERENCE TABLE ............................. 156 v Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis LISTS OF SUMMARY TABLES Page Table I Source Country - Completed Cases - 1987 .......... 7 Table II Number of Identified Completed Transactions, by Source Country, 1981-1987 .................... 9 Table III The Megadeals ..................................... 11 Table IV Direct Investment Distribution by Industry Subsector of U.S. Affiliate - Completed Transactions, 1987 .............................. 15 Table V Direct Investment Distribution by Industry Group of U.S. Affiliate and Country of Foreign Parent - Completed Transactions, 1987 .......... 19 Table VI Mode of Investment by Source Country- Completed Transactions, 1987 .................... 30 Table VII State Location of Foreign Investments, 1987 ...... 33 vi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis LIST OF FIGURES Page Figure 1 Total Number of Foreign Direct Investments, 1978-87............................................... 3 Figure 2 Number of Investments by Source Country, 1987...... 6 Figure 3 Number of Investments by Industry, 1987............. 14 Figure 4 Number of Investments by State, 1987................ 32 Figure 5 Number of Investments in the Metal Mining Industry, 1983-87.................................... 38 Figure 6 Number of Investments in the Oil and Gas Extraction Industry, 1983-1987...................... 40 Figure 7 Number of Investments in the Nonmetal lie Minerals Industry, 1983-87.......................... 42 Figure 8 Number of Investments in the Foods Industry, 1983-87............................................... 44 Figure 9 Number of Investments in the Textile Mill Products Industry, 1983-87.......................... 46 Figure 10 Number of Investments in the Paper Industry, 1983-87............................................... 48 Figure 11 Number Investments in the Printing and Publishing Industry, 1983-87........................ 50 Figure 12 Number of Investments in the Chemical Industry, 1983-87.................................... 52 Figure 13 Number of Investments in the Petroleum Refining Industry, 1983-87........................... 54 Figure 14 Number of Investments in the Rubber and Miscellaneous Plastics Products Industry, 1983-87............................................... 56 Figure 15 Number of Investments in the Stone, Clay, and Glass Industries, 1983-87.......................... 58 vii Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis LIST OF FIGURES (Cont'd.) Page Figure 16 Number of Investments in the Primary Metal Industry, 1983-87................................... 60 Figure 17 Number of Investments in the Fabricated Metal Products Industry, 1983-87................... 62 Figure 18 Number of Investments in the Machinery Industry, 1983-87................................... 64 Figure 19 Number of ^vestments in the Electrical Industry, 1983-87................................... 67 Figure 20 Number of Investments in the Transportation Industry, 1983-87................................... 69 Figure 21 Number of Investments in the Instruments and Related Products Industry, 1983-87............. 70 Figure 22 Number of Investments in the Communications Industry, 1983-87................................... 71 Figure 23 Number of Investments in the Electric, Gas & Sanitary Services Industry, 1983-87.......... 73 Figure 24 Number of Investments in the Retail Trade Industry, 1983-87............................. 75 Figure 25 Number of Investments in the Banking Industry, 1983-87................................... 76 Figure 26 Number of Investments in the Services Industry, 1983-87................................... 78 Figure 27 Number of Investments in the Real Property Industry, 1983-87.......................... 80 viii 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 (FDI) transactions In the United States during 1987, analyze recent trends In such Investment, and provide data and related Information on significant transactions. The report incorporates Information obtained In fulfilling responsibilities assigned to the Secretary of Commerce by Executive Order No. 11858, dated May 7, 1975. Specifically, the Secretary of Commerce Is responsible for "the obtainment, consolidation, and analysis of Information on foreign direct 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, and 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 regardless of the source or timing of funds. In the case of a Joint venture, the estimated foreign ownership proportion of the investment is cited. These values are Intended to Identify the relative size of various Investments 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 available from generally-available 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. In all instances, the monetary values and numbers of investments given In this report Include only those identified in these sources and should not be considered a compilation of the entire universe of FDI transactions. 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 the various agencies' general regulatory responsibilities, rather than for the specific purpose of providing data on foreign investment. Certain other Investment transaction and related data collected by the Federal Government on a business confidential basis to facilitate Federal regulatory responsibilities or to provide aggregate data for