Details
š¦Ā New financing channel: Aozora Bank and Resona Bank are launching funds totaling JPY 200 billion (about USD 1.35 billion) to channel external risk capital specifically into corporate acquisitions. Launch is scheduled for 2025, starting with a JPY 50 billion fund that can provide up to JPY 10 billion per company.
š M&A record: In the first half of 2025, transactions involving Japanese companies reached an all-time high of USD 232 billion. Nomura Holdings topped the M&A advisory ranking by deal value for the first timeādriven largely by several large transactions. Analysts expect the M&A boom to continue for the next few years.
š¤Ā AI as a driver: Globally, megadeals such as OpenAIās USD 40 billion funding round and Samsungās USD 1.7 billion acquisition of FlƤktGroup are fueling the acquisition wave. AI adoption and data center demand are attracting investment into tech and infrastructure.
šĀ Limits in sight: The failed USD 46 billion takeover attempt by Couche-Tard for Seven & i shows that acquisitions of major Japanese conglomerates remain politically and culturally sensitive despite investor pressure.
Why It Matters
- Capital Mobilization: Additional financing sources beyond the big banks make it easier for mid-sized companies to access acquisition capital.
- Economic Transformation: The record level of Japanese M&A activity points to a profound realignment of key sectors. In addition, pronounced demographic shifts and a lack of succession intent in family-owned businesses are increasing the pressure to sell and fueling M&A and MBI transactions.
- Global Context: AI-driven mega-deals and strategic acquisitions are reshaping international competition and putting pressure on European firms to act.
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