-- The Japanese government has instructed Seoul-based private equity firm MBK Partners to cancel its planned acquisition of machine tool maker Makino Milling Machine Co (TYO:6135), citing national security concerns, according to media reports on Thursday.
Finance Minister Satsuki Katayama told parliament that after reviewing risks to domestic production and technology leakage, the industry ministry deemed the investment a national security threat, Reuters News reported on the same day.
The government classifies machine tools as highly sensitive goods with significant potential for military diversion, and the industry is designated a core sector under the Foreign Exchange and Foreign Trade Act, Nikkei Asia said.
Machine tools are seen as highly sensitive goods with strong military diversion potential, Bloomberg News reported, citing Makino's exchange filing.
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