KKR Buys Japan’s Taiyo Holdings: The Next Chapter in the Take-Private Boom

The Japanese chemical manufacturer Taiyo Holdings is close to a going-private deal with KKR. The board has deemed KKR’s offer acceptable.

Share price: around ¥6,000 – the takeover offer is expected to come in slightly below that level.

This deal underscores the latest chapter in a historic transformation.

Japan’s Stock Market Is Shrinking – For the First Time in Over a Decade

In 2025, 124 companies were delisted from the Tokyo Stock Exchange. It marks the second consecutive record year, 30 more than in 2024. The total number of listed firms declined by 58 to 3,778.

For comparison: Japan has almost as many publicly listed companies as the United States, with only one-seventh of the economic output.

The driver: Since 2023, the Tokyo Stock Exchange has aggressively pushed for better capital efficiency. Companies trading below book value and failing to improve have come under pressure.

The result: Tender offers reached a record $68 billion in 2025. Total M&A volume involving Japanese companies hit around $350 billion.

The Take-Private Pipeline

KKR’s move on Taiyo is far from an isolated case. Just in recent weeks:

Hisamitsu Pharmaceutical: $2.55 billion MBO (January 2026) – The Japanese pharma manufacturer wants to leave public markets to restructure long-term without analyst pressure.
MCJ (PC manufacturer): $1.3 billion MBO with Bain Capital (February 2026).
Raksul: $770 million buyout with Goldman Sachs (December 2025) – Goldman is returning half of the voting rights to management.

Japanese companies are chronically undervalued compared to international peers, sit on large cash reserves, but remain weak in shareholder orientation. PE firms buy cheaply, optimize governance and capital structure, and aim for value creation.

The Concern

Japan’s crown jewels, especially in pharmaceuticals and critical technologies, could fall into the wrong hands through foreign buyouts.

Goldman Sachs, however, sees no slowdown ahead: innovative financing structures using private credit are expected to enable even larger deals in 2026.

👉 Sources: BT SG, Bloomberg