The Japanese government plans to issue new takeover guidance, letting target companies weigh economic security and input from employees and partners, not just the bid price, when assessing offers, Nikkei Asia reported Tuesday.
The Ministry of Economy, Trade and Industry (METI) will add a practical Q&A section to its 2023 guidelines as early as July, emphasizing that a high purchase price alone does not necessarily make a deal desirable, the news daily said.
Under the new guidance, corporate value includes worker and partner contributions, plus economic security benefits like resilient supply chains and tech leak protection, the publication said.
METI aims to correct the misconception that boards must accept the highest offer or risk litigation, clarifying that rejection or remaining independent is acceptable, the report said.
While the 2023 guidelines warned against overemphasizing hard-to-measure value, the new Q&A stresses that opposition from employees or partners, or concerns over an acquirer's tech leaks, can legitimately hurt corporate value, the report said.
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