Japan government relinquishes majority stake in Japan Post Bank.

Japan Post (https://www.japanpost.jp/) is planning to sell shares of its subsidiary Japan Post Bank (Yuucho Ginko) before the end of FY2024, reports Nikkei Online. An announcement is expected on February 27.

Approximately 420 million shares will be put up for sale, and the sale is expected to amount to around 600 billion yen. This move aims to reduce Japan Post's investment ratio (voting rights basis) from the current approximately 61.5% to below 50%, leading to the relaxation of regulations imposed on Japan Post Bank by the Postal Privatization Act.

Japan Post is currently part of Japan’s WTO Agreement of Government Procurement (GPA) coverage schedule and subsequently also covered by the EU-Japan Economic Partnership Agreement (EPA). ()

Thus far, contracts offered by the bank that met the conditions of the GPA were offered in WTO GPA tenders. It is yet unclear whether, the Bank will cease to offer public contracts on the international market, after the upcoming privatization.

After the privatization of Tokyo Metro last year, it is the second large public entity where the Japanese government is relinquishing its majority stake. IN case of the Tokyo Metro, the public transport enterprise has continued to offer contracts to the international government procurement market.