Blocking foreign bid could harm Japan's global reputation

Japan may face reputational harm if it blocks a $47 billion foreign takeover bid for Seven & i Holdings, according to Keisuke Yokoo, head of the Japan Investment Company (JIC). He emphasized that blocking the deal could send negative signals about Japan’s openness to foreign investment. Yokoo discussed the JIC’s role in supporting the consolidation of companies in the chemicals sector and improving the performance of JSR, which it took private for $6 billion last year. His views suggest that Japan's business leaders are not entirely protectionist, contrary to some beliefs. Despite facing resistance from Seven & i regarding the bid by Canada’s Alimentation Couche-Tard, Yokoo noted that concerns about economic security are not clearly relevant to the retail sector. He reiterated that blocking the deal could impact Japan's global business image. Yokoo highlighted the importance of consolidation in Japan's chemicals industry, particularly for firms supplying semiconductor materials. He mentioned the need for fewer, larger companies to enhance global competitiveness in this vital sector. Concerning investments, Yokoo expressed interest in supporting firms that strengthen Japan's manufacturing capability but clarified that the JIC would wait for Nissan to show signs of recovery before considering any investment.