JCOM buyout plan delayed due to lack of Chinese approval
(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Feb. 8 -- (Kyodo) _ Sumitomo Corp. and KDDI Corp. on Friday announced a delay in their plan to buy out Jupiter Telecommunications Co. due to a lack of approval by China, where both firms post sales.
The announcement came as many other Japanese companies have reported similar delays to acquisition projects since bilateral ties soured last year due to a dispute over the sovereignty of the Japanese-controlled Senkaku Islands, which are claimed by China.
The major trading house and telecom company said "procedures and responses required under Chinese competition law have not yet been completed."
Sumitomo and KDDI had planned to commence a tender offer for all shares in Japan's largest cable television operator by early February.
Chinese authorities have not approved trading house Marubeni Corp.'s deal to acquire U.S. grain merchant Gavilon and Dentsu Inc.'s deal to buy out major British advertising agency Aegis Group plc.
(c) 2013 Kyodo News International, Inc.
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