Japan's Shibaura classified as core to national security amid takeover battle
The thermistor maker received an unsolicited takeover bid from Taiwanese components supplier Yageo (2327.TW), opens new tab in February and called on compatriot components maker Minebea Mitsumi (6479.T), opens new tab to submit a competing bid.
Shibaura was previously not among those designated as significant to the economy or security, meaning a would-be buyer was not obligated to notify the government prior to any deal.
The new classification is unlikely to affect the course of the deal as Yageo protectively filed for a security review based on its own analyses that some of Shibaura's businesses may fall under the core category.
Nearly a fourth of about 4,000 listed Japanese firms are classified as core in the finance ministry list, last updated on July 15.
Shibaura representatives were not immediately available for comment.
The bidding battle has become a test of Japan's openness to unsolicited takeovers. Stigma around such offers has eased recently yet unsolicited bids from foreign firms remain rare.
Yageo, the world's largest maker of chip resistors, is awaiting the outcome of the security review under the Foreign Exchange and Foreign Trade Act, which has been extended twice.
The classification list is based mainly on company responses to ministry questions. It is the foreign suitor's responsibility to judge whether a potential deal requires a security review, the ministry said.
Last year, Seven & i Holdings (3382.T), opens new tab changed its self-reported national security classification to core when it was fending off a $46 billion bid from Canada's Alimentation Couche-Tard (ATD.TO), opens new tab. The retailer said the change was unrelated to the approach, which was unlikely to be affected by the designation.
($1 = 147.1100 yen)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
5 minutes ago
- Reuters
Banco BPM profit beats forecasts with Anima boost after UniCredit drops bid
MILANO, Aug 5 (Reuters) - Banco BPM ( opens new tab on Tuesday reported higher then expected quarterly earnings helped by fees earned through newly acquired fund manager Anima Holding, and confirmed the full-year outlook after staving off a takeover by lager peer UniCredit ( opens new tab. Earnings for the three months through June are the first set of figures to include Anima, which Banco BPM managed to buy as it strived to fend off UniCredit's bid. UniCredit ( opens new tab last month dropped its takeover bid for Italy's third largest bank after running into government opposition. Banco BPM said second-quarter net profit stood at 703.8 million euros ($815 million), up from 380 million a year earlier and above an LSEG consensus estimate of 646 million euros. Revenues met expectations at 1.55 billion euros with a 9.6% rise in fees which more than offset a 3.9% decline in net interest income amid lower interest rates. ($1 = 0.8639 euros)
Reuters
35 minutes ago
- Reuters
Trump again threatens 'very substantial' tariff hikes for India over Russian oil
WASHINGTON/NEW DELHI, Aug 5 (Reuters) - U.S. President Donald Trump said on Tuesday he would increase the tariff charged on imports from India from the current rate of 25% "very substantially" over the next 24 hours, in view of New Delhi's continued purchases of Russian oil. He also said a "zero tariff" offer for imports of U.S. goods into India was not good enough, alleging that India was "fuelling the war" in Ukraine. Trump's threat to India over its purchases of Russian oil started on July 31, when he announced a 25% tariff for Indian goods, along with an unspecified penalty. "They're fuelling the war machine, and if they're going to do that, then I'm not going to be happy," Trump told CNBC in an interview on Tuesday, adding that the main sticking point with India was that its tariffs were too high. "Now, I will say this, India went from the highest tariffs ever. They will give us zero tariffs, and they're going to let us go in. But that's not good enough, because of what they're doing with oil, not good." An Indian government source said that India's purchases of Russian oil have helped to stabilise global oil prices by easing the pressure on supplies from other regions. India, the world's third biggest oil importer and consumer, buys more than a third of the oil it needs from Russia. "If we stop buying Russian oil, who will replace those barrels to maintain balance (in the market) and at the same time prevent the prices from shooting up? We don't want a repeat of 2022 when prices shot up to $137 a barrel," the source said, referring to the oil market spike around the time when Moscow's invasion of Ukraine began. The official spoke on condition of anonymity because the source was not authorised to speak to the media. Trump's latest comment followed a similar threat on Monday, which prompted India's Foreign Ministry to say the country was being unfairly singled out over its purchases of Russian oil. "It is revealing that the very nations criticising India are themselves indulging in trade with Russia (despite the Ukraine war)," it said in a statement issued late on Monday. "It is unjustified to single out India," it added. The EU conducted 67.5 billion euros ($78.0 billion) worth of trade with Russia in 2024, including record imports of liquefied natural gas that totalled 16.5 million metric tons, the Indian ministry said. The United States continues to import Russian uranium hexafluoride for use in its nuclear power industry, palladium, fertilisers and chemicals, it added, without giving a source for the export information. The U.S. embassy and the EU's delegation in New Delhi did not immediately respond to a request for comment. Both the United States and EU have reduced their trade ties with Russia since it launched its full-scale invasion of Ukraine. India imported about 1.75 million barrels per day of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources. It has faced pressure from the West to distance itself from Russia over the Ukraine war. New Delhi has resisted, citing its longstanding ties with Moscow and economic needs. India's National Security Adviser Ajit Doval is likely to go ahead with a scheduled visit to Russia this week, two government sources said. Foreign Minister S. Jaishankar is expected to visit in the coming weeks. The sudden rift between India and the U.S. has been deepening since July 31. Trump has said that from Friday he will impose new sanctions on Russia as well as on countries that buy its energy exports, unless Moscow takes steps to end the war with Ukraine. The trade tensions have caused concern about the potential impact on India's economy. The equity benchmark BSE Sensex .BSESN closed down 0.38%, while the rupee dropped 0.17% versus the dollar.
Reuters
2 hours ago
- Reuters
India's Dalmia Bharat Sugar posts quarterly profit fall on lower sugar production
Aug 5 (Reuters) - India's Dalmia Bharat Sugar and Industries ( opens new tab posted a near 30% fall in first-quarter profit on Tuesday, dragged by lower sugar production. The company reported a net profit after tax of 383.7 million rupees ($4.37 million) for the quarter ended June 30, compared with 547.3 million rupees a year ago. The New Delhi-based firm, which supplies sugar to companies such as Coca-Cola (KO.N), opens new tab, Britannia ( opens new tab and Dabur ( opens new tab, posted a 2% fall in quarterly revenue. For further earnings highlights, click [here] KEY CONTEXT India's sugar output for the 2025 marketing year, ending in September, is projected to fall below domestic consumption for the first time in eight years. This decline is primarily attributed to reduced sugarcane availability in key producing states, driven by the adverse effects of El Niño and limited groundwater. PEER COMPARISON * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT APRIL-JUNE STOCK PERFORMANCE -- All data from LSEG IBES -- $1 = 87.7950 Indian rupees
