Economy February 2, 2026

Keidanren to Host Elliott for Private Governance Discussion as Activist Presence Grows in Japan

Japan’s largest business federation schedules March 5 meeting with activist fund to exchange views on corporate governance amid rising shareholder activism

By Leila Farooq
Keidanren to Host Elliott for Private Governance Discussion as Activist Presence Grows in Japan

Keidanren has invited Elliott Investment Management to a private meeting on March 5 to discuss corporate governance. The move reflects mounting shareholder activism in Japan, where activists have escalated stakes in major firms. Keidanren says the session will help both sides understand each other’s governance priorities.

Key Points

  • Keidanren invited Elliott Investment Management to a private meeting on March 5 to discuss corporate governance, with an Elliott portfolio manager expected to outline the fund’s strategy and engage in a candid exchange of views - impacts corporate governance dialogue across Japanese firms.
  • Elliott has accumulated stakes in several Keidanren member companies, including Toyota Industries, Tokyo Gas, Kansai Electric Power and Sumitomo Realty & Development, highlighting activist interest in major sectors such as manufacturing, utilities, energy and real estate.
  • Activist presence in Japan has grown sharply: the number of activist firms rose to 75 in 2025 from 10 in 2015, and activist investment in Japanese equities increased to 13 trillion yen ($84 billion) by 2025, shifting targets toward large, blue-chip companies. Sectors affected include corporate governance, equities markets, and capital allocation practices.

Japan’s most prominent business federation, Keidanren, has extended an invitation to Elliott Investment Management for a private meeting on March 5 to discuss matters of corporate governance, Keidanren said in a notice to member firms. Elliott in recent months has taken holdings in several large companies that are members of the federation, including Toyota Industries, Tokyo Gas, Kansai Electric Power and Sumitomo Realty & Development.

The planned session marks a notable instance of direct engagement between a cornerstone of Japan’s corporate establishment and an activist hedge fund. Keidanren said an Elliott portfolio manager responsible for Japanese equity investments is expected to explain the fund’s investment strategy and how it approaches engagement with companies, followed by what the notice called "a frank exchange of views."

"We believe it is important to deepen our understanding of activists’ investment policies and areas of focus, while also seeking to foster their understanding of how Japanese companies approach corporate governance," Keidanren said in the notice to members.

Keidanren confirmed the planned meeting in response to a request for comment but declined to provide further detail. Elliott could not be reached immediately for comment.

The invitation comes as shareholder activism in Japan has gained traction. Keidanren pointed to a rise in interest driven by recent governance reforms, regulatory pressure on companies to improve capital efficiency and a perception of stock market undervaluation that has made Japan more attractive to activists.

Data cited by industry trackers show the number of activist firms operating in Japan rose to 75 in 2025, up from 10 in 2015, and that activist investment in Japanese equities expanded to 13 trillion yen by 2025, equivalent to about $84 billion. Many of the targets have shifted beyond small and mid-size companies to focus more on large, blue-chip firms. Keidanren has roughly 1,600 member companies, and several of those have been among recent activist targets.

Within Keidanren there is also mounting concern that some shareholders’ focus on near-term profit metrics could discourage longer-term growth investment. The federation warned that uniform demands from activists might not fully reflect the unique circumstances of individual companies.

In policy proposals submitted to the government in December, Keidanren urged that companies ensure appropriate distribution of value to a wide range of stakeholders - including employees, business partners and local communities - rather than concentrating benefits solely on shareholders.

The government is planning to revise the corporate governance code this year. (Currency conversion used in this report: $1 = 154.7600 yen.)

Risks

  • A stronger emphasis by some shareholders on short-term profits could discourage longer-term growth and capital investment, posing risks to companies' future competitiveness - particularly in capital-intensive sectors such as manufacturing and utilities.
  • Uniform or one-size-fits-all demands from activist investors may not reflect the particular circumstances of individual firms, potentially prompting governance changes that are misaligned with company-specific strategies and local stakeholder needs - affecting corporate strategy and community relations.
  • Rising activist pressure and public scrutiny of governance could increase operational and strategic uncertainty for large listed firms, potentially influencing share prices and market volatility in affected sectors such as real estate, energy and industrials.

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