General overview

What legislation governs M&A activity in your jurisdiction?

The Companies Act, the Securities and Exchange Law (the SEL) and the Anti-Monopoly Law (the AML) primarily govern takeovers and mergers in Japan. The Foreign Exchange and Foreign Trade Law (the FEFTL) has an important bearing on transactions involving foreign companies, and the rules of stock exchanges are also relevant to transactions involving listed companies.

Business-specific laws, such as the Banking Law or the Insurance Business Law, are relevant in M&A transactions depending on the businesses of relevant parties.

What impact have recent legislative changes had on the nature and amount of M&A activity?

The Companies Act, which replaced the portions of the Commercial Code related to companies, became effective in May 2006. The Companies Act contains some amendments relating to M&A activity. First, there are broader exceptions to the requirement to hold a...