Japan is leading Asia’s M&A resurgence in 2025, racking up a record $232bn in deal volume in the first half of the year—driven in large part by a wave of private equity activity, take-private deals, and corporate carve-outs, according to a report by Reuters.
The country’s management reforms, undervalued public companies, and ultra-low interest rates have made Japan an increasingly attractive hunting ground for both foreign and domestic private equity firms, according to bankers.
In one of the year’s standout private equity transactions, Bain Capital acquired a portfolio of non-core retail assets from Seven & I Holdings for $5.5bn. The transaction is part of a broader trend of Japanese corporates divesting legacy businesses under governance reforms, with PE buyers stepping in as primary acquirers.
Private equity firms are also circling larger take-private deals, with Bain Capital and EQT among the reported suitors for cybersecurity firm Trend Micro, which has a market cap of over $8.5bn.
“Carve-outs of non-core assets and take-privates will remain central to Japan’s M&A landscape,” said Yusuke Ishimaru, senior deputy head of M&A advisory at SMBC Nikko Securities. “PE funds are well-positioned to capitalise on this shift.”
