Cross shareholdings is back

Nowadays, in Japan, listed companies’ cross shareholdings is back.

According to Nihon Keizaishinbun, the purpose of this cross shareholdings is not to avoid takeover but to strengthen  the relationship to corporate clients.

A few years ago, some listed companies began to hold shares each other again for takeover defense.

But cross shareholdings is bad custom from the viewpoint of corporate governance because cross shareholders are never opposed.

So, the moves are criticized by other shareholders.