Mitsui Fudosan Under Pressure for $7 Billion Share Buyback

Masanobu Komoda, chairman of Mitsui Fudosan, is reportedly under pressure to announce a $7 billion share buyback. This move comes as global capital rediscovering Japan seeks evidence of improved corporate governance. The efforts to increase returns on equity and give shareholders a louder voice in Japan's corporate landscape are gaining traction, with the Nikkei 225 Stock Average surpassing 40,000 for the first time. U.S. activist fund Elliott Investment Management's push for Mitsui Fudosan to announce a share buyback is scrutinized amid Japan's growing popularity with global investors. Elliott's past success with Dai Nippon Printing Co. demonstrates its ability to identify targets for change. Mitsui Fudosan's response to Elliott's pressure serves as a barometer for Japan's evolving business landscape. Prime Minister Fumio Kishida's efforts to improve Japan's economy and attract foreign investors face challenges from incomplete reforms. Kishida's government must consider leveraging the bursts of corporate progress at companies like Mitsui Fudosan to foster economic change.