A Comparison Of M&A Laws

The pandemic and rise in geopolitical tensions have triggered significant developments in the regulation of M&A worldwide, and Japan is no exception. Prospective investors should pay attention to recent developments in two major areas of regulation on foreign direct investments (FDIs) and takeover defence measures in Japan.

FDI REGULATION

A key piece of legislation regulating FDIs that has been amended to address international developments is the Foreign Exchange and Foreign Trade Act (FEFTA). Although some of the activities are not expressly referred to as investments, among others, the FEFTA broadly regulates the following:

• Acquisition of 1% or more of the shares in a listed company in Japan;