Korean private equity firm MBK Partners will acquire Japanese aluminum company Altamira Holdings for approximately 130 billion yen (about $1.2 billion). The Japanese government approved the transaction following a pre-review under the Foreign Exchange and Foreign Trade Act. This decision contrasts sharply with the recent recommendation to halt MBK's acquisition of Makino Precision, raising questions about the criteria used in Japan's economic security reviews.
According to the Nihon Keizai Shimbun (Nikkei) on May 11, MBK plans to purchase shares of Altamira Holdings from U.S.-based Apollo Global Management. The total acquisition cost, including debt, is around 130 billion yen. Altamira specializes in aluminum cans and industrial aluminum materials, generating approximately 200 billion yen in revenue. It ranks third in Japan's aluminum can market, following Toyo Seikan. The company was formed in 2022 when Showa Denko's aluminum business merged with Mitsubishi Materials, both of which were acquired by Apollo prior to the merger. Apollo has been expanding its presence in the Asian market and recycling business under its management.
Altamira was required to undergo pre-review because some of its lithium-ion battery-related materials fall under Japan's designated 'core industries.' The Japanese government mandates that foreign investments or acquisitions in sectors deemed critical to national security must be reported and reviewed beforehand. Lithium-ion battery materials were added to this list following the enactment of the Economic Security Promotion Act in 2022. This move aims to reduce reliance on Chinese technology in battery development, as these materials are also used in defense equipment. At the time of Apollo's acquisition, this sector had not yet been classified as a core industry.
Just a month prior, MBK received a contrary decision from the Japanese government regarding its bid for Makino Precision. The government advised halting the acquisition based on the Foreign Exchange Act, marking one of the first such recommendations since 2008, when a British fund's stake in J-Power was blocked. Concerns were raised about the potential for information leaks due to the extensive use of Makino's machinery in defense manufacturing processes.
In contrast, the approval for Altamira's acquisition came relatively quickly. While discussions regarding Makino lasted about ten months, the review for Altamira was completed in approximately two months. Authorities likely assessed that security concerns regarding Altamira were minimal.
However, it remains unclear whether the criteria for investment approvals have become more transparent. Industry voices have expressed that within core industries, the boundaries of what is approved remain vague, complicating investment decisions. While the approval of Altamira sets a new precedent, uncertainty will persist until Japanese authorities disclose specific judgment criteria.
This acquisition reflects changes in the M&A landscape surrounding Japanese companies. Pressures to enhance corporate value on the Tokyo Stock Exchange and rising costs due to inflation have prompted Japanese firms to pursue management buyouts (MBOs) and business separations. Consequently, private equity firms with financial resources and restructuring expertise are playing an increasingly significant role. According to Nikkei, the number of M&A transactions involving foreign investment funds in Japanese companies reached 226 in 2025, the highest since records began in 1998. Notably, large acquisitions are often led by foreign funds, with their total acquisition value in 2025 exceeding 5.4 trillion yen, four times that of Japanese funds.
The approval of the Altamira acquisition suggests that Japan is not outright blocking foreign capital under the guise of economic security. However, the distinction between what is permitted and what is prohibited remains opaque. The contrasting decisions regarding Makino and Altamira provide some insight into Japan's economic security review process, but a clear set of criteria that the market can accept is still lacking.
* This article has been translated by AI.
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