Press Conference by Shizuka Kamei, Minister for Financial Services

(Excerpt)

(Tuesday, May 25, 2010, from 8:59 a.m. to 9:49 a.m.)

[Questions & Answers]

Q.

A restructuring plan under the umbrella of an affiliation with a Chinese company has been set for the time-honored apparel company, Renown. It is quite likely that there will be a growing number of M&A deals in the future in which a Chinese company takes over a Japanese company. How do you see this situation?

A.

M&A attempts coming from other countries, not only China but also the U.S. or a European country, have taken place in a variety of forms throughout our past. The opposite also holds true - Japanese companies have made M&A deals to take over foreign counterparts. What we should ultimately consider is how the Japanese economy is going to gain strength from within, and I don't think that the way to go should be to resort to some antiforeign means such as banning such attempts [of foreign-initiated M&A] categorically and across the board. I hope [in any event] that Japanese companies will never lose their motivation for growth.

(End)