Japan opens for (foreign) business
Digest
The Financial Times News Briefing for August 22nd focuses on several key news stories. PWC China is facing a potential six-month ban from doing business in the country due to its failure to raise concerns about Evergrande's inflated revenues. This would be Beijing's toughest action against a major accounting firm. Meanwhile, Mexican federal judges have gone on strike to protest President Lopez-Obrador's plans to overhaul the judiciary, including replacing all judges with elected officials. The strike has halted most court proceedings, raising concerns about the impact on the judicial system. In a separate development, a Canadian company has made an unsolicited bid to buy Seven-End-I Holdings, the Japanese company that owns 7/11 convenience stores. This would be the largest foreign takeover of a Japanese business ever, highlighting changes in Japan's M&A landscape.
Outlines
Global News Headlines
This segment introduces the Financial Times News Briefing for August 22nd, highlighting key news stories including potential sanctions against PWC in China, a potential takeover of 7/11's parent company in Japan, and a strike by Mexican federal judges protesting judicial reforms.
PWC China Faces Potential Ban
PWC China is facing a potential six-month ban from doing business in the country due to its failure to raise concerns about Evergrande's inflated revenues. This would be Beijing's toughest action against a major accounting firm.
Mexican Judges Strike Over Judicial Reforms
Mexican federal judges have gone on strike to protest President Lopez-Obrador's plans to overhaul the judiciary, including replacing all judges with elected officials. The strike has halted most court proceedings, raising concerns about the impact on the judicial system.
Canadian Company Bids to Buy 7/11 Parent Company
A Canadian company has made an unsolicited bid to buy Seven-End-I Holdings, the Japanese company that owns 7/11 convenience stores. This would be the largest foreign takeover of a Japanese business ever, highlighting changes in Japan's M&A landscape.
Keywords
PWC China
A major accounting firm facing potential sanctions from the Chinese government due to its failure to raise concerns about Evergrande's inflated revenues.
Evergrande
A Chinese real estate developer that defaulted on its debts in 2021, leading to potential sanctions against PWC China.
Mexican Federal Judiciary
The system of courts and judges responsible for enforcing federal laws in Mexico, currently on strike to protest proposed reforms.
Judicial Reform
Changes to the structure, processes, or laws governing the judiciary, with Mexico's proposed reform aiming to replace all judges with elected officials.
Seven-End-I Holdings
The Japanese company that owns 7/11 convenience stores, targeted for acquisition by a Canadian company in a potential record-breaking foreign takeover.
Unsolicited Bid
An offer to buy a company without prior consent or negotiation from the target company, unusual in Japan's traditional business practices.
M&A Guidelines
Regulations governing mergers and acquisitions, recently updated in Japan to encourage consolidation and make it easier for foreign companies to acquire Japanese businesses.
Q&A
What are the potential consequences of the ban on PWC China?
The ban could significantly impact PWC's business in China, potentially leading to financial losses and reputational damage. It also signals a stricter regulatory environment for accounting firms in the country.
Why are Mexican judges protesting the proposed judicial reforms?
Judges fear that the reforms will undermine judicial independence and lead to increased political influence over the courts. They believe that replacing all judges with elected officials could lead to corruption and a decline in the quality of justice.
How could the Canadian company's bid to buy Seven-End-I Holdings impact Japan's corporate landscape?
The bid could trigger a wave of foreign takeovers of Japanese companies, as the recent changes to M&A guidelines have made it easier for foreign buyers to acquire Japanese businesses. This could lead to increased competition and consolidation in the Japanese market.
Show Notes
PwC faces a six-month business ban in China, and Mexico’s Supreme Court judges go on strike. Plus, a potential takeover of 7-Eleven may set the tone for a new era of Japanese acquisitions.
Mentioned in this podcast:
PwC expects six-month ban in China over Evergrande audit
Mexico’s judges to strike over López Obrador’s plan to fire them
After 7-Eleven, Japan’s M&A scene may never be the same again
The FT News Briefing is produced by Niamh Rowe, Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.
Read a transcript of this episode on FT.com
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