Kioxia's ¥2.20tn half, plus China's move on SoftBank-ABB

SoftBank Group says it confirmed on 4 November that China's foreign investment security review office had notified it of a prohibition on acquiring ABB's robotics business in China. The company's notice is dated 6 November.

What changed: SoftBank signed a definitive agreement with ABB Ltd on 8 October 2025 to buy ABB's robotics business, conditional on regulatory approvals and customary closing conditions. The prohibition comes from the Office of the Working Mechanism for Foreign Investment Security Review and covers the China business.

What to watch: SoftBank says it is in close discussions with ABB and that both companies are engaging constructively with the transaction. It will announce promptly any matter it decides needs disclosure. The notice does not say whether the deal will proceed, be restructured or be terminated.

Japan Tobacco said on 6 November that a Russian presidential decree signed the previous day has put four of its Russian manufacturing subsidiaries under temporary administration. JT says it kept operating in Russia while complying with all domestic and foreign sanctions and regulations.

What changed: JT describes the status only as temporary administration of four local companies, all of them manufacturers. It says it is working to establish the details, the responses open to it and the effect on the group, and the notice puts no figure on the financial impact. JT will publish promptly anything it determines needs disclosing.

Toyota has opened a self-tender at ¥2,725 a share for about 108.75mn of its own shares, roughly 0.92% of those outstanding excluding treasury stock, at a cash cost of about ¥296.4bn. The offer runs from 6 November to 7 December 2026, and settlement starts on 29 December.

What changed: The sellers are two MS&AD Insurance Group Holdings subsidiaries and two other non-life insurers. Toyota says the non-life insurers among its policy shareholders have a policy of reducing those holdings, and it worries that market sales would temporarily worsen supply and demand in its shares. The price is a 10% discount to the lower of the 4 November close (¥3,028) or the one-month average to that date (¥3,030).

The number: Toyota is also raising its buyback authorisation from 500mn shares and ¥1tn to 610mn shares and ¥1.3tn. It says cash of ¥9.48tn would fall to ¥9.19tn afterwards. The offer is not a completed buyback, and shares bought will be cancelled. If tenders exceed the planned number Toyota buys pro rata, and the insurers have confirmed they would tender more in that case. SMBC Nikko Securities is the tender agent, and online applications are not accepted.

Mitsubishi Heavy Industries lifted its forecast for business profit in the year to March 2027 to ¥600bn from ¥540bn, an 11.1% increase, and its revenue forecast to ¥6tn from ¥5.4tn. The company says first-half energy and aerospace, defense and space work progressed faster than planned and that gas turbine combined cycle margins improved.

By the numbers: Energy business profit is now forecast at ¥380bn, up from ¥340bn, and Aerospace, Defense & Space at ¥180bn, up from ¥170bn. First-half business profit rose 45.3% to ¥249.3bn on revenue up 19.4% to ¥2.52tn. The full-year forecast still carries a ¥70bn loss on the IGCC plants at Nakoso and Hirono, plus a separate ¥20bn risk buffer.

The move: Separately, the board resolved on 6 November to buy back up to 120mn shares, 3.6% of shares outstanding excluding treasury stock, for up to ¥300bn. Purchases run from 9 November 2026 to 8 November 2027 and all repurchased shares will be cancelled. The forecast assumes ¥150 to the dollar and excludes any effect from the Middle East situation.

Japan's trade ministry has moved from questions to orders at Chubu Electric Power. Minister Akazawa said at his 6 November post-cabinet press conference that METI issued a business improvement order under the Electricity Business Act that day.

What changed: The order directs Chubu Electric to start with a fundamental strengthening of its legal-compliance framework and its handling of internal whistleblowing reports. The company must report to METI continuously on implementation, and the minister said progress must first be verified objectively using outside personnel. METI received Chubu Electric's reply on 29 October to a reporting-collection order covering three cases of inappropriate conduct. The ministry then worked toward issuing the improvement order and issued it once all procedures were complete.

What to watch: Akazawa said the three cases appear not to have arisen in the same department, but that governance needs a thorough review. He pointed to compliance awareness and to whistleblowing reports that were not acted on, and said the ministry will keep responding "with maximum strictness." The next checkpoints are the outside-verified progress reports Chubu Electric must now send to METI.

Japan's cabinet approved a ¥10bn draw on its reserve funds for cybersecurity on Friday, the finance minister said at the post-cabinet press conference. The decision was presented as a way to move quickly on security measures.

What changed: The minister named three items. The largest is ¥4.1bn for equipment and materials for police cybersecurity work. Another ¥3.8bn goes to strengthening Digital Agency systems, and ¥2bn covers AI-assisted vulnerability checks on key systems at government bodies.

What to watch: A cabinet ministers' meeting on cybersecurity was due to compile an emergency package the same day, so the reserve use was decided ahead of the package's formal adoption.

The Ministry of Finance's auction calendar lists a 10-year government bond auction dated 5 November. The ministry's page does not carry result figures we could verify, so this issue prints no yield, coupon or demand numbers.

What to watch: Check the ministry's published results for the 5 November auction before drawing a read on demand for Japanese government debt.