Davis Polk partner Ken Lebrun was quoted in an International Financial Law Review article discussing the regulatory changes and market forces that are expected to increase private equity deal activity in Japan.

The Japanese Ministry of Economy, Trade, and Industry recently published corporate governance and public takeover guidelines that should create a more robust and predictable M&A market. “The guidelines provide guidance on when a takeover bid should be reported to and considered by a listed company’s board of directors and the factors the board should consider in determining whether to accept a takeover offer,” Ken explained. This is expected to encourage more M&A activity and boost private equity interest in Japan.

“Although these are ‘soft law’ guidelines that are not legally binding, they provide a useful framework of analysis for companies, investors, investment bankers and lawyers to analyse and guide their behaviour in connection with corporate takeovers,” Ken added.

Japan’s PE market expected to fly high,” IFLR (July 21, 2023) (subscription required)