Japan seeks more acquisitions of resource companies abroad
TOKYO — The Japanese government plans to encourage private-sector businesses to buy overseas resource companies, many of which now look cheaper amid an oil slump.
The Japan Oil, Gas and Metals National Corp., or Jogmec, can invest in special-purpose companies that handle development projects but is not allowed to purchase stakes in their parents. Legislative revisions under consideration will lift this restriction, enabling the government-backed entity to invest in foreign resource companies together with domestic businesses.
The Ministry of Economy, Trade and Industry will present the changes as early as this autumn’s extraordinary Diet session.
Low oil prices have caused investment in oil and gas fields to stagnate worldwide. The government hopes that the involvement of Jogmec will give the private sector an incentive to invest in development.
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