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Japan releases new M&A guidelines to promote takeovers, consolidation

Published 08/31/2023, 07:36 AM
Updated 08/31/2023, 03:46 PM
© Reuters.

TOKYO (Reuters) - The Japanese government on Thursday released new guidelines to promote more mergers and acquisitions (M&A) in the world's third-largest economy as it hopes to spur consolidation in industry and boost competitiveness.

The guidelines set out a code of conduct for M&As, cracking down on some defence tactics and stressing that credible takeover offers should not be spurned without sincere consideration.

The new rules have drawn strong interest from global investors or strategic buyers frustrated with defensive tactics aimed at blocking takeovers and entrenching management.

Ahead of the publication, the Ministry of Economy Trade and Industry (METI) received comments from 50 parties including overseas funds, an unusually high number for such guidelines.

"Most of the comments were positive," Tomoaki Nakanishi, METI's corporate system division director, said in a briefing.

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