Japanese companies cannot use a national security designation as a tool to thwart foreign takeovers, a senior Finance Ministry official said, pushing back at speculation Tokyo¡¯s foreign exchange act could be manipulated for protectionism.
The comments follow media reports retail giant Seven & I Holdings is seeking to be classified as ¡°core¡± to national security under the Foreign Exchange and Foreign Trade Act (FEFTA) to fend off a buyout bid from Canada¡¯s Alimentation Couche-Tard.
The senior official, who declined to comment on individual deals, said the issue of ¡°core¡± classification doesn¡¯t change the process of the government¡¯s security review in cases of foreign bids for companies designated as significant to Japan¡¯s economy or security.
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