Gov't orders TCI not to acquire larger stake in J-Power

Tuesday 13th May, 05:45 PM JST

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7 Comments

GrouchyGaijin at 09:45 AM JST - 13th May

This will be a test of Japan's real modus operandi. They can't wander the world and scream and cry when foreign governments caps Sumitomo or whoever's investment, and then turn around and halve the level they enjoy overseas at home. Either play fair or suffer the consequences: economic backwater status.
borscht at 10:50 PM JST - 13th May

This is the kind of action that send foreign investors to places like China. At a time when perhaps Japan needs more foreign investors.

The question remains, though, TCI asked J-Power for something and J-Power rushed off to the government for protection. Could it be that J-Power administrators realized the TCI just might make them more profitable? By cutting down on the top-heavy administration?
sfg2001 at 10:56 PM JST - 13th May

Yes they can go to China, but they are facing much more regulations there than in Japan! It was the right decision for Japan to turn TCI down. Better use J-Powers cash for investment in Japan than to make some rich guy richer. And do not forget every country has certain areas which are under special protection. The only problem is, that some xenophobic foreigners use double moral.
rjdsr at 12:12 AM JST - 14th May

There's no need for predatory foreign funds here. This isn't a sandbox for quick profits.
jerseyboy at 03:13 PM JST - 14th May

rjdsr..."This isn't a sandbox for quick profits". Man, you sure have a gift for stating the obvious. First off, Japan is the least friendly to foreign investment of all the major economies. Second, the corporate profit rates here are a fraction of what they are in other countries. We would have to asssume TCI knew this, and was, therefore, investing for the long-term. They are not a "predatory" fund. But I guess it gives you satisfaction to believe that. That way you can continue to rationalize Japan falling further and further into economic irrelevance, at least from an investment standpoint.
nigelboy at 04:28 PM JST - 14th May

The question remains, though, TCI asked J-Power for something and J-Power rushed off to the government for protection. Could it be that J-Power administrators realized the TCI just might make them more profitable? By cutting down on the top-heavy administration?

No. The domestic law requires that for a foreign entity to to acquire over 10% of the shares of a public traded company, they have to be approved by the government first.

U.S. used the amended Exxon-Florio to block China's bid for Unocal and I believe U.S. does not allow foreign investments of any kind for nuclear operated facilities.

Many OECD nations restrict foreign investments based on sector.

Some of the materials used to decline TCI is found here (Japanese)

http://www.enecho.meti.go.jp/topics/080416/04_sanko.pdf
rjdsr at 09:43 PM JST - 15th May

jerseyboy,

First off, Japan is the least friendly to foreign investment of all the major economies.

Proof?

We would have to asssume TCI knew this, and was, therefore, investing for the long-term.

Proof? Have they told you this?

What is long term? They weren't here 20 years ago, or 100 years ago, so there is no basis on which to say they will be around long term. Good riddance!