JAPAN Trends and Developments Contributed by: Haseru Roku, Nagashima Ohno & Tsunematsu
Conclusion The robust activity in Japan’s technology M&A landscape in 2024 is the result of both domestic challenges and global trends. Industries such as AI, semiconductors, IT systems, software, and automotive manufacturing are undergoing sig- nificant transformations. Companies are lever- aging M&A to secure valuable human resources, adapt to technological demands, and reposition themselves in a rapidly changing market. Regulatory developments, including revisions to tender offer regulations and government support measures, are also influencing M&A strategies and practices. Stakeholders must stay informed of these changes to navigate the complexities effectively. As Japan continues to address its unique chal- lenges and capitalise on global trends, technol- ogy M&A is expected to remain a critical tool for corporate growth and adaptation in the coming years.
rely heavily on software and IT systems, which typically come under “information processing services” or “software development” – both regarded as designated industries. Therefore, if the investment target engages in R&D for in- vehicle software, intelligent driving systems, or other IT-related fields, the foreign investor needs to submit a prior notification and obtain govern- ment clearance before closing of the investment. Although the standard review period for FDI prior notifications is two weeks to one month, Chinese entities – or investors with Chinese connections (eg, an investor has a parent company or major investors in China, or an investor has substantial assets or operations in China) – often face more stringent and lengthy reviews. Consequently, foreign investors, particularly those with some connection to China, must conduct thorough due diligence on the target’s lines of business, carefully determine whether prior notification is required, plan their approach to discussions with the relevant authorities (usually METI), and allow additional time in the transaction schedule to accommodate the necessary FDI notifications and reviews.
218 CHAMBERS.COM
Powered by FlippingBook