Key Takeaways
- • Japan-related M&A totaled 3,883 deals from January to September, the highest for that period since records began in 1985, according to Recof Data as reported by Nikkei.
- • Foreign buyers acquired 326 Japanese companies in the same period, more than 20 percent above the previous period high set last year, with foreign deal value up 40 percent to 6.2 trillion yen.
- • Starting next year, Japan will tighten its minimum tax, raising the rate and lowering the exemption threshold, which could increase tax bills for founders and owner-managers selling stakes.
- • Business succession deals reached 833 from January to September, up more than 10 percent year on year and the highest since comparable data began in 2007.
- • Private equity firms are the main buyers, with Apollo's acquisition of Nippon Sheet Glass and KKR's planned buyout of Taiyo Holdings among large deals, while the yen traded near 158 per dollar.
Summary
Global private equity firms are increasingly acquiring Japanese businesses, driven by a weak yen and a looming tax increase on wealthy business owners, according to a report from the Korea JoongAng Daily citing Japan's Nikkei business daily. The yen traded in the 158 range against the dollar on the day of reporting, and the currency backdrop has made Japanese assets more attractive to foreign buyers.
According to Nikkei, citing M&A research firm Recof Data, Japan-related mergers and acquisitions totaled 3,883 from January to September, the most for the period since records began in 1985. Foreign companies and investors bought 326 Japanese companies, more than 20 percent above the previous high for the period set last year. The value of foreign acquisitions rose 40 percent to 6.2 trillion yen, already exceeding last year's full-year total. The total value of all deals, including domestic transactions, fell 21.1 percent, because 2025 figures had been inflated by megadeals such as NTT's full takeover of spinoff NTT Data Group.
A key driver of supply is tax policy. Starting next year, Japan will tighten its so-called minimum tax, lowering the exemption threshold while raising the rate, which could increase the bill for founders and owner-managers realizing large gains from selling their stakes. Several fund officials told Nikkei that owner-managers have increasingly asked potential investors whether they could buy their companies quickly. Aging owners seeking successors are also adding to the pipeline, with business succession deals numbering 833 from January to September, up more than 10 percent from a year earlier and the most since comparable data became available in 2007.
Private equity firms are the principal buyers. Apollo Global Management's acquisition of glassmaker Nippon Sheet Glass and KKR's planned buyout of chemical maker Taiyo Holdings are among the large transactions. Swedish investment firm EQT and a consortium of LY Corporation and Bain Capital have been competing for Kakaku.com, operator of the Tabelog restaurant review service, with the LY-Bain group responding to EQT's tender offer with rival proposals. Bain plans to commit about half of the $10.5 billion Asia fund announced in May to Japan. Buyers are often acquiring listed companies and taking them private to streamline operations.
Corporate restructuring is also feeding deal flow. Since the Tokyo Stock Exchange in 2023 called on listed companies to improve capital efficiency and corporate value, more firms have sold low-profit and noncore units. Renesas Electronics, for example, sold its timing business to U.S. chipmaker SiTime. Guidelines for Corporate Takeovers issued by the Ministry of Economy, Trade and Industry the same year have also reshaped the market. Rising interest rates could raise financing costs for acquisitions, but many market participants expect the effect to be limited because Japanese rates remain lower than those in other countries, according to Nikkei.
According to Nikkei, citing M&A research firm Recof Data, Japan-related mergers and acquisitions totaled 3,883 from January to September, the most for the period since records began in 1985. Foreign companies and investors bought 326 Japanese companies, more than 20 percent above the previous high for the period set last year. The value of foreign acquisitions rose 40 percent to 6.2 trillion yen, already exceeding last year's full-year total. The total value of all deals, including domestic transactions, fell 21.1 percent, because 2025 figures had been inflated by megadeals such as NTT's full takeover of spinoff NTT Data Group.
A key driver of supply is tax policy. Starting next year, Japan will tighten its so-called minimum tax, lowering the exemption threshold while raising the rate, which could increase the bill for founders and owner-managers realizing large gains from selling their stakes. Several fund officials told Nikkei that owner-managers have increasingly asked potential investors whether they could buy their companies quickly. Aging owners seeking successors are also adding to the pipeline, with business succession deals numbering 833 from January to September, up more than 10 percent from a year earlier and the most since comparable data became available in 2007.
Private equity firms are the principal buyers. Apollo Global Management's acquisition of glassmaker Nippon Sheet Glass and KKR's planned buyout of chemical maker Taiyo Holdings are among the large transactions. Swedish investment firm EQT and a consortium of LY Corporation and Bain Capital have been competing for Kakaku.com, operator of the Tabelog restaurant review service, with the LY-Bain group responding to EQT's tender offer with rival proposals. Bain plans to commit about half of the $10.5 billion Asia fund announced in May to Japan. Buyers are often acquiring listed companies and taking them private to streamline operations.
Corporate restructuring is also feeding deal flow. Since the Tokyo Stock Exchange in 2023 called on listed companies to improve capital efficiency and corporate value, more firms have sold low-profit and noncore units. Renesas Electronics, for example, sold its timing business to U.S. chipmaker SiTime. Guidelines for Corporate Takeovers issued by the Ministry of Economy, Trade and Industry the same year have also reshaped the market. Rising interest rates could raise financing costs for acquisitions, but many market participants expect the effect to be limited because Japanese rates remain lower than those in other countries, according to Nikkei.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.