From Investing.com: 2024-03-31 18:00:14

Japanese banks are now more willing to finance hostile takeovers thanks to new government guidelines. Previously seen as disruptive, these bids are becoming more common, with companies like Nidec and Dai-ichi Life Holdings making hostile bids. The change in attitudes has led to an increase in unsolicited deals, with banks considering proposals that benefit the target company.

Last year, the Ministry of Economy Trade and Industry released new M&A guidelines to encourage corporate takeovers by cracking down on excessive defence tactics. These non-binding guidelines have already led to a rise in hostile takeover bids, signaling a shift in Japan’s dealmaking landscape. Banks like Sumitomo Mitsui Financial Group are embracing the change and open to considering unsolicited proposals.

In the past 12 months, there have been three hostile takeover proposals in Japan, including one by Brother Industries against a management buyout at Roland DG. Daiwa Securities Group, a Japanese investment bank, has expressed willingness to advise a hostile acquirer if the deal benefits the target company or industry. The trend towards hostile bids marks a significant shift in Japan’s traditionally collaborative business culture.



Read more at Investing.com: Japanese banks less reluctant to finance hostile takeovers, lobby chief says By Reuters