Japan is moving to block a takeover attempt by South Korea-based private equity firm MBK Partners of a major industrial machinery manufacturer, citing national security concerns, officials have said.

The government has concluded it is “essential to recommend the suspension” of MBK Partners’ bid to fully acquire Tokyo-based Makino Milling Machine, described as a leading global producer of machine tools, Finance Minister Satsuki Katayama told reporters on Thursday.

She said that because Makino Milling’s equipment is “widely used by our country’s defence equipment manufacturers,” there is a “risk that the investment could undermine national security.”

The suspension recommendation was issued on Wednesday.

Founded in 1937, Makino Milling supplies precision tools used across industries including aerospace, automotive, medical technology, and semiconductors, according to its website.

The move marks only the second time Japan has issued such a suspension order under its foreign exchange and trade laws, which are designed to protect national security interests.

In a statement on Thursday, MBK Partners said it had been informed that Makino Milling’s products include “sensitive goods with a particularly high potential for military use.”

The firm said it was “extremely surprised” by the government’s notice, noting that the acquisition had been expected to receive approval by late June.

MBK Partners now has until May 1 to decide whether to comply with the suspension recommendation.

Join us on our WhatsApp Platform @KOIKIMEDIA NEWS YOUR PAGE

Koikimedia Bringing the World 🌎 Closer to Your Doorstep