(13 June 2025 – Japan) Japanese merger and acquisition (M&A) activity is likely to buck the global down trend according to advisors who anticipate dealmakers to focus on Japanese enterprises upside potential, relatively low valuations and country’s increased openness to M&A.
Outbound deals are also predicted to expand as companies race to respond to the global protectionist shift by acquiring local production facilities, as seen in Nippon Steel’s 2023 deal to acquire US Steel.
Dealogic data shows that M&A in Japan increased by 135 percent in dollar terms in the first four months of 2025, following a 39 percent jump to a 17-year high of US$180 billion in 2024. This compares with the sluggish global total, which is up eight percent so far this year but still hovering near a ten year low.
“The long-term interest rate has risen in Japan, but it is still relatively low compared with other countries. In addition, Japan is politically stable, and the government is friendly to businesses and welcoming to foreign investment. Such countries are few and far between these days” said Blackstone Group Senior Managing Director, Daisuke Kitta.
“I don’t think this momentum will go in the next few years” stated Bain & Co Partner Azusa Owa.