Citing energy security risks, the government on Tuesday ordered The Children's Investment Fund, a British hedge fund, to drop a bid to raise its 9.9 percent stake in Electric Power Development Co. to 20 percent.
By law, foreign investors need government approval before taking more than a 10 percent stake in a Japanese company in sectors such as electrical power deemed critical to national security.
The order was the first such rejection under the Foreign Exchange and Foreign Trade Law.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.