Introduction
On April 22, 2026, pursuant to the Foreign Exchange and Foreign Trade Act of Japan (the “FEFTA”), the Minister of Finance, together with the Minister of Economy, Trade and Industry, issued a formal recommendation to suspend the acquisition (the “Acquisition”) of shares of Makino Milling Machine Co., Ltd. (“Makino Milling”) through the tender offer and subsequent series of procedures announced by MM Holdings K.K. (the “Offeror”), an MBK Partners investment vehicle (such recommendation, the “Suspension Recommendation”). In response, the Offeror finally accepted the Suspension Recommendation on April 30, 2026.
This suspension recommendation marks the first such formal recommendation in 18 years since the 2008 suspension recommendation issued by the Minister of Finance and the Minister of Economy, Trade and Industry regarding the additional acquisition of shares in Electric Power Development Co., Ltd. by The Children’s Investment Fund, a UK-based investment fund (an acquisition intended to increase its ownership stake from 9.9% to 20%). It is also the first formal suspension recommendation since the 2017 amendment to the FEFTA, and is expected to have significant practical implications.
The author was responsible for policymaking, foreign direct investment (“FDI”) screening, regulatory enforcement, and strengthening cooperation with foreign FDI authorities regarding the FEFTA at the Ministry of Economy, Trade and Industry, and provides support on FDI regulations in Japan and other jurisdictions. The author will provide a preliminary report on this Suspension Recommendation. Additionally, drawing solely on publicly available information, he will explain the authorities’ reasoning for the decision and discuss practical insights in light of this Suspension Recommendation.
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Author: Oki Osawa (Partner)