Recent Developments In Japanese Tender Offer Regulations

Recently, the Japanese Ministry of Economy, Trade and Industry (METI) decided to revise the current regulation regarding the tender offer system and large shareholding reporting system, in order to:

• ensure market transparency and fairness;

• promote constructive communication between companies and investors; and

• reflect changes in the environment of the Japanese capital market.

The latter point, in particular, includes:

• an increase in the number of unsolicited offers through in-market transactions;

• an increase in the number of activists;

• diversification in the types of M&A;

• an increase in passive investments;

• the expansion of collaborative engagements; and