NJ may pull public investments from Japanese company for cutting ties with Israeli defense contractor – By Daniel Han (Politico) / May 2, 2024
The potential move is a direct result of a pro-Israel law signed by former Gov. Chris Christie in 2016.
Democratic New Jersey Gov. Phil Murphy’s administration may divest tens of millions of dollars from a Japanese conglomerate after the company severed ties with an Israeli defense contractor over the war in Gaza, according to records obtained by POLITICO.
The state’s potential divestment from the Itochu Corporation would make New Jersey one of the first publicly known states since the Oct. 7 Hamas attacks on Israel to penalize a company for cutting ties with an Israeli business. And it comes as college campuses across the country, including in New Jersey, face student protests demanding that colleges divest from companies linked to Israel.
Itochu, a trading firm, is one of the largest companies in Japan and is involved in textiles, energy, food, machinery and other businesses. As of Dec. 31, 2023 — the most recent publicly available information — New Jersey’s pension fund had 709,800 shares of Itochu that was valued at approximately $29 million, according to state Treasury spokesperson Danielle Currie.
The state “preliminarily determined” that the company’s decision to cut ties with an Israeli-based military contractor triggered a 2016 state law that prohibits the state pension fund from investing in companies that boycott Israel or Israeli businesses, according to a letter obtained by POLITICO through a public records request. That law was in response to the Palestinian-led Boycott, Divestment and Sanctions movement that pushes for economic punishment of Israel and businesses tied to the country over its policies towards Palestinians.
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