📈 Record Year 2025: Closed deals worth ¥5 trillion (~$33 billion) in just nine months, up 80% year over year. Mid-sized targets and PE buyouts are driving the volume. The pullback of China-focused capital is sharpening investor attention on Japan.
📋 Tighter Rules: METI is pushing for stronger disclosure requirements, independent committees to review offers, and greater consideration of shareholder interests in takeovers of listed companies.
🏗️ Governance Drives Dealmaking: The Tokyo Stock Exchange is forcing boards to focus on capital returns and share prices. The motto “選択と集中” (Selection & Concentration) fuels carve-outs, spin-offs, and succession deals at record speed.
- The TSE now publishes monthly lists of companies meeting these standards — creating public pressure and boosting visibility among investors.
🔌 Funding Gap: Apollo, Blackstone, and KKR are expanding their teams in Tokyo to tap into the surge in acquisitions and capital demand. Despite strong banks and low rates, Japan’s private credit market is projected to grow 34% within three years.
Big Picture
Japanese companies are sitting on massive cash reserves and continue to use cheap financing to fund acquisitions. Despite tighter regulations, private equity benefits from falling capital costs and growing divestment pressure.
At the same time, rising international capital is pushing valuations and acquisition prices higher — intensifying competition across the market.
The China Survival Guide for Western Businesses
Entity setup, WeChat strategy, hiring your first local team. 12+ years on the ground in Shanghai.
