(Bloomberg) -- The Japanese government added Seven & i Holdings Co. to a list of “core” designated companies, a potential hurdle for Alimentation Couche-Tard...
-- The Japan ese government added Seven & i Holdings Co. to a list of “core” designated companies, a potential hurdle for Alimentation Couche-Tard Inc. ’s proposal to buy out the convenience-store operator.Last month, the Japan ese retailer filed for the new designation under the Foreign Exchange and Foreign Trade Act to change its “non-core” status under the law, people with knowledge of the matter said.
Improved governance, market regulators pushing to boost value and clearer guidelines on corporate mergers, are creating a more fertile ground for deals in corporate Japan, long considered impenetrable because of entrenched interests that protected companies. The finance ministry’s guidelines can be tricky to navigate. In the case of an investment of more than 1%, but below 10%, prior notification can be waived if the investor and others can meet certain conditions, such as not appointing directors to the company’s board, according to ministry rules.The finance ministry vets any entity seeking to acquire more than 10% of a company considered part of a core industry, which includes sectors such as aerospace, nuclear energy and rare earths.
The new designation requires any investor seeking to own more than 1% of a core-designated company to apply for preapproval, unless it can promise not to submit written proposals that demand answers or action from the board within a certain timeframe. Investors would also have to forsake participation in board meetings, or any committees that have decision-making authority.
The Foreign Exchange Finance Ministry Foreign Trade Act Alimentation Couche-Tard Inc. Convenience-Store Japan Core Company
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