Overview
- Japan asked MBK Partners to cancel its planned purchase of Makino Milling Machine, citing national security risks tied to Makino’s precision tools used in defense production.
- Officials relied on Japan’s Foreign Exchange and Foreign Trade Act to issue the recommendation in a rare step and the first since the law was overhauled in 2017.
- MBK has 10 days to respond to the request, and regulators can issue a formal order to halt the deal if the firm refuses.
- Makino’s shares fell as much as 10% in Tokyo trading after news of the government’s intervention.
- Finance Minister Satsuki Katayama said Makino’s machines are widely used in defense work and warned the takeover could undermine Japan’s security.