Law Takes Effect in Japan to Promote Bank, Bus Firm Mergers
Tokyo, Nov. 27 (Jiji Press)--A special measure that grants exceptions to the antimonopoly law came into force in Japan on Friday as the government hopes it will promote mergers in the ailing regional banking and bus industries.
The special law, effective for up to 10 years, is designed to help regional banks and bus operators survive the tough business environment caused by a rapid decline in the country’s population and the spread of the new coronavirus.
The special law gives antitrust exemptions on condition that regional banks or bus operators are expected to improve earnings through mergers without causing unreasonable rises in lending rates or bus fares.
When Juhachi-Shinwa Bank was created in October through a merger of two regional banks in the southwestern prefecture of Nagasaki, the Fair Trade Commission’s screening took a long time amid concerns about a possible oligopoly.
The government believes that the special law will make merger procedures speedier enough to support regional banks struggling with falling populations and low interest rates.
[Copyright The Jiji Press, Ltd.]