Japanese Economy Minister: 7-Eleven Acquisition Tied to National Security
Japan’s Economy Minister Ryosei Akazawa has warned that a potential foreign acquisition of Japanese retail giant Seven & i would be "heavily related" to national security. This public statement is the first by a senior Japanese official to address security concerns raised by a $47 billion buyout offer by Canada’s Alimentation Couche-Tard.
Background
Seven & i, the owner of 7-Eleven convenience stores, has rejected Couche-Tard’s offer, and its founding family is in talks to take the company private to fend off the takeover attempt. In September, the Japanese government classified Seven & i as "core" to Japan’s national security, sparking questions about whether this was a defensive move.
Minister’s Statement
Akazawa made the comments during a press conference at the Japan National Press Club, where he was asked about the potential acquisition of Seven & i. He emphasized that the matter is heavily related to national security, citing the potential for convenience stores and their distribution networks to be utilized in the event of disasters to help bring hot food to affected regions.
"If Seven & i’s convenience store business is in foreign hands and run solely for profits, we’ll have to think about various things, such as whether we can get full support when our people affected by the disaster are suffering," Akazawa said.
Global Protectionism
Akazawa’s comments come as protectionism is on the rise globally, with countries like the United States taking steps to block foreign acquisitions on national security grounds. In a recent example, US President Joe Biden blocked Nippon Steel’s $14.9 billion bid for US Steel.
BOJ Rate Hikes
When asked about potential Bank of Japan (BOJ) rate hikes, Akazawa expressed uncertainty about current interest rate levels, stating that it is up to the BOJ to decide on monetary policy. He suggested that the central bank may want to have more room for a rate cut in case of emergencies.
Conclusion
The Japanese government’s concerns about national security surrounding the potential acquisition of Seven & i highlight the importance of considering the potential impact on the country’s domestic market and its citizens. As global protectionism continues to rise, it is likely that more countries will follow suit in scrutinizing foreign acquisitions and investments.
FAQs
- What did Japan’s Economy Minister say about the potential acquisition of Seven & i?
The minister said that the matter is "heavily related" to national security, citing the potential for convenience stores and their distribution networks to be utilized in the event of disasters. - Why did the Japanese government classify Seven & i as "core" to national security in September?
The exact reasons behind the classification are unclear, but it is believed to be related to the company’s significant presence in the Japanese market and its potential impact on national security. - What is the current status of the buyout offer by Alimentation Couche-Tard?
The offer has been rejected by Seven & i, and the company is in talks to take itself private to fend off the takeover attempt.