The chairman of the Japan Chamber of Commerce and Industry called on the government Thursday to implement measures to protect domestic companies from takeover bids by foreign firms.
Protection is necessary because "Japanese stocks remain at low levels," Nobuo Yamaguchi said.
Yamaguchi was reacting to a bill that would make it easier for foreign companies to take over domestic firms through stock swaps. It is expected to pass in the current Diet session.
With the Commercial Code revisions expected to take effect in June 2006, Yamaguchi called on the government to take timing into account when it considers protective measures.
The JCCI chief also spoke of Internet service provider Livedoor Co.'s acquisition of a majority stake in radio-station operator Nippon Broadcasting System Inc.
Yamaguchi said it was "a negative aspect of capitalism if what has been established through long-term efforts by labor and management as well as shareholders can be conquered in the wink of an eye."