Tuesday, July 5

Japan to consider tighter rules on foreign owners of domestic firms -Yomiuri

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TOKYO — The Japanese government is considering tightening regulation on foreign funds that hold stakes in domestic firms with important technology in areas such as nuclear and defense, the Yomiuri newspaper reported on Wednesday.

The new regulation will aim to prevent overseas funds and companies from slapping demands on Japanese companies that may weaken their competitive edge or leak technological expertise, the paper said, without citing sources.

The government plans to come up with specific measures by the end of this year and move toward crafting necessary legislation, the paper said.

Among the measures being considered is to order foreign funds that break rules to sell their holdings of the Japanese firms, the Yomiuri said. (Reporting by Leika Kihara; Editing by Chang-Ran Kim and Himani Sarkar)