What is the SPAC environment in Japan, especially in relation to food and agriculture? Tokyo Corporate Partners Jeremy White and Mitsutoshi Uchida, along with Mitchell Presser, Global Corporate Co-Chair and Co-Chair of the Food and Agriculture Industry Group, who also co-leads the SPAC practice, delved into this topic at the Global AgInvesting Asia conference.
Despite Japan not having a SPAC listing system or active de-SPAC market to date, Japanese regulators have recognized the potential benefits of SPACs and have started discussing introducing SPACs in Japan as a tool to promote and expand start-up ventures.
They illustrated the potential demand in the de-SPAC market, of which agriculture investments could be target candidates, outlining local hurdles for U.S. SPACs to merge with Japanese companies and how the benefits of a de-SPAC transaction could outweigh the related costs.
With regard to possible SPAC listings, the speakers also highlighted how underwriters and the stock exchange conduct a listing review, the listing criteria for a company to go public, and the differences compared to the current Japanese listing system.