China is acting as a drag on a merger-and-acquisition spree by Japanese companies amid deteriorating relations between the two countries amid the territorial dispute over the Senkaku Islands in the East China Sea.
Trading house Marubeni Corp. said last May that it would acquire U.S. commodities trader Gavilon Holdings LLC for $3.6 billion by September. But Marubeni has put off the planned completion of acquisition procedures until the end of next month because the deal is still "awaiting China's approval," said an executive at the Tokyo-based firm.
M&As involving companies with more than a set amount of sales in China are required to be approved by the Chinese government.