TOKYO, Mar 31 (Reuters): Japanese banks have become less reluctant to finance hostile acquisitions because the government's new takeover guidelines have shaken off the taboo on such deals, Japan's new banking lobby chief said.
The comments from Akihiro Fukutome, the head of the Japanese Bankers Association, offer evidence of a sea change in Japan that has helped bring it closer to Western-style dealmaking.
"Banks were previously worried about reputational risks" in helping unsolicited bids, Fukutome said in an interview. "But I believe new takeover guidelines from the industry ministry last year have helped lower psychological hurdles."
Hostile bids, once shunned because they were seen as disruptive to Japan Inc's collaborative ethos, are still relatively rare, but the frequency is increasing.
The Ministry of Economy Trade and Industry (METI) last year released new M&A guidelines aimed at cracking down on excessive defence tactics, removing a long-held stigma around unsolicited bids and spurring corporate takeovers.
Japan banks less reluctant to finance hostile takeovers
FE Team | Published: March 31, 2024 22:19:32
Japan banks less reluctant to finance hostile takeovers
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