Japanese firms can't block takeovers

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Japanese firms can't block takeovers
FirmsCan'tBlock
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TOKYO — 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 that Tokyo's foreign exchange act could be manipulated for protectionism.

TOKYO — 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 that Tokyo's foreign exchange act could be manipulated for protectionism.

But in the case of acquiring control in any so-called designated business, a would-be buyer must file prior notification regardless of whether the target is 'core' or 'noncore,' the official said.The official added that the classification doesn't affect the degree of scrutiny during its review on national security, saying that the government 'will examine whether the transaction would pose risks to national security.

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Firms Can't Block Takeovers

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