Japan: Serious concerns emerged from Japan Post's Tencent investment in Rakuten

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Rakuten announced on the 12th that it will raise 242.3 billion yen through a third-party allotment of capital undertaken by Japan Post Holdings and Chinese internet giant Tencent. Among them, Japan Post is the largest source of funds. Japan Post will invest about 150 billion yen in a capital and business alliance with Rakuten, with an investment ratio of 8.32%. The company plans to strengthen alliances in a wide range of fields such as logistics, mobile, digital transformation, and finance.

From a business strategy perspective, the capital and business alliance between Rakuten and Japan Post can be evaluated with the expectation of synergistic effects. Aside from self-proclaimed historical alliances, most media have responded positively. I have no intention of denying it either.

But there are serious concerns that cannot be overlooked regarding the property and security of the people.

The strangeness of "capital injection" by a government-owned company. First of all, from Rakuten's point of view, even if this alliance is a historic achievement, Japan Post's point of view shows a different landscape. At that time, it should be remembered that Japan Post is a company in which the government has a majority stake (56.87% is owned by the government and local governments).

Under the parent company, there are individual business companies such as Japan Post, Japan Post Bank, and Japan Post Insurance. If individual business companies form a business alliance, the question is whether it is appropriate for the parent company, in which the government has a majority stake, to make a huge investment of about 150 billion yen in a specific company. 　Many media are arguing only by looking at this announcement, but if you go back in time and go back in time, you can see the strangeness.