Japan Turns Hostile

For decades, Japan's corporations have been resistant to takeovers because of a system of cross-holdings. Companies all hold stock in other companies, which makes it nearly impossible for anyone to gain a controlling interest. It also promotes a stable business environment, since a strong economy benefits everyone. However, economic struggles have led to many companies selling off their cross-held stocks to increase capital or cover bad loans. In 2000 and 2001, the cross-holding system began to unravel, and Japan has seen a rise in takeovers since then [ref].