Press Conference by Minister Muto (Excerpt)

*Note: This is a provisional translation for reference purposes only.

11:11 to 11:20 a.m.
Friday, January 24, 2025
Press Conference Room, METI Main Building

Opening Remarks

Canceling the registration of a company from the M&A Support Organization Registration System

I would like to mention one point.

Regarding M&A DX Corporation, one of the merger and acquisition (M&A) intermediary agencies registered in the M&A Support Organization Registration System of Japanese government, we discovered that the agency in question, acting as intermediary, introduced the seller of one company to the buyer of the company, and that it established this M&A despite the doubt regarding the buyer’s financial strength, which makes it an inappropriate candidate for purchasing the company.

We consulted a third-party committee of legal experts regarding this act, and, in response, the committee concluded that the act is in violation of the so-called due care of a prudent manager, which is a requirement under the M&A Guidelines for SMEs. Accordingly, we have decided to cancel the registration of the agency as of today.

Moreover, regarding another intermediary agency, a case was uncovered that the agency supported the seller of one company in conducting its M&A without appropriately   informing the seller regarding the buyer. We warned the agency and instructed it to implement due consideration and to take appropriate measures.

M&As are important means of achieving business succession and growth for SMEs. For this purpose, developing an environment in which SMEs can strive to engage in M&As with peace of mind is significant.

This is the first time that we have canceled a registration under the M&A Support Organization Registration System.

Going forward, any violations against the M&A Guidelines for SMEs will result in discussions on actions to take, including cancellation of registration, and delivery of appropriate discipline.

For detailed information, the administrative staff will provide a briefing later.
I will end my remarks here.

Question-and-Answer Session

President Trump’s policy of strengthening tariffs

Q: I would like to ask you about the impact of the U.S.’s strengthening of the tariffs.
On his first day in office, U.S. President Trump announced that he will consider imposing a 25% tariff on products from Canada and Mexico. On January 21, the following day, he also stated that he intends to impose additional tariffs on products from China and the EU, and now he continues to announce the strengthening of tariffs. At the press conference after the previous cabinet meeting this week, you answered that “we should carefully examine the impact on Japanese companies” that may be caused by these measures.

At present, this strengthening of tariffs may have an impact on Japanese automobile manufacturers running local factories in Mexico and Canada as export bases to the U.S. and on their supply chains as well. Could you provide your view on these impacts?

A: As I mentioned at the previous press conference, I reiterate that we should carefully examine the specific details of the various tariff measures to be uncovered going forward and their impacts on Japan. We will continue to address such measures appropriately.

Based on this, I understand that automobile manufacturers and other companies from Japan have been developing business in Canada and Mexico, including those from my home areas that are developing business in Mexico, and that many Japanese companies have established supply chains there. I think that we will need to carefully identify the impacts of the measures, in particular on related Japanese companies.

Moreover, we will also need to consider measures while METI and I, pay close attention to the behavior of the governments of Canada and Mexico.

Addressing the ordinary session of the Diet

Q: The Diet will start its session today. I understand that METI is going to submit some bills. Could you comment on METI’s aims and the areas of focus for such bills?

A: The Diet will start an ordinary session today.
The initial budget related to METI targets measures for supporting domestic investment in the fields of GX(*) and semiconductors that will bring about a significant ripple effect to rural areas and that are indispensable for achieving the ongoing wage increases. We will do our utmost to have the budget passed by the end of the fiscal year.

In addition, we are considering the submission of four bills to the Diet in relation to METI.
These bills aim to support systems and equipment for the mass production of next-generation semiconductors, work out the specifics of an emissions trading system, build a system for quick business revitalization, and thoroughly enhance fair subcontracting practices.

These four bills are all designed to address the pressing issues that the Japanese economy faces today. We will do our utmost to have them passed by the end of the session. Taking into full consideration our position as a minority ruling party, I believe that it is impossible to pass budgets and legislation without the cooperation of the opposition parties. For this reason, we will strive to provide them with clear and meticulous explanations so that we can receive their support, and we will also listen carefully to those parties’ opinions to lead to the enactment of the bills.