The Japanese government has asked Seoul-based private equity firm MBK Partners to cancel its planned acquisition of machine tool maker Makino Milling Machine, invoking a national security law for only the second time in history.
Makino’s machine tools are widely used in defense applications and the takeover could undermine national security, Finance Minister Satsuki Katayama said in parliament. Makino’s shares dropped as much as 10% on Thursday morning in Tokyo.
The move underscores Japan’s growing concerns over security as the U.S.’s commitment to defend its allies looks increasingly uncertain and tensions with neighboring China simmer. Earlier this week, the country removed restrictions on weapons exports for the first time since World War II.
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