Key Takeaways
- • EQT has raised its offer for Kakaku.com seven times and extended its tender period for a tenth time, with the deadline set for November 12 at a price of 3,683 yen (about $23) per share, according to Reuters.
- • Bain Capital and SoftBank subsidiary LY Corp raised their rival offer to 3,700 yen per share on Monday, rising to 3,720 yen if they secure the support of Kakaku's third-largest shareholder KDDI.
- • Kakaku's shares closed at 3,747 yen on Wednesday, above both bids, signaling that market participants expect further price increases.
- • Financial sponsor-backed M&A in Japan totalled $24 billion in January-September 2026, nearly double the $13 billion in the same period of 2024, per LSEG data.
- • Strategic corporate buyers joining private equity firms are pushing up prices and making contested takeovers more common in Japan, a shift dealmakers say will raise the cost of final bids.
Summary
A bidding contest between private equity firms EQT and Bain Capital for Kakaku.com, a Japanese internet company valued at about $5 billion, illustrates how takeovers in Japan are becoming increasingly contested, Reuters reported on October 28, 2026. EQT made the first approach in May. Bain then teamed up with SoftBank Group subsidiary LY Corp, which operates the Line messaging app and Yahoo Japan portal, and submitted a rival offer. The six-month battle has seen EQT raise its offer seven times. EQT extended its tender offer for a tenth time on Wednesday, with the deadline for shareholders to tender at the latest price of 3,683 yen a share set for November 12.
Bain and LY raised their offer to 3,700 yen on Monday, rising to 3,720 yen if they secure KDDI's support. Kakaku's shares ended Wednesday at 3,747 yen, above both offers, which Reuters noted indicates that market participants expect further price increases.
The contest is the highest-profile Japanese takeover battle since KKR outbid Bain last year for Fuji Soft, a software firm valued at $4.1 billion. Other contested deals include CVC and KKR's bid for cosmetics maker Mandom, and Advantage Partners' counterbid against Integral for Kadoya Sesame Mills, according to the Nikkei. Financial sponsor-backed M&A totalled $24 billion in January-September, per LSEG data.
Dealmakers cited in the report said the entry of strategic buyers is a key driver. Yusuke Watanabe, a partner at Carlyle, said companies in the same sector as targets may see more growth potential than funds acting alone, so joint bids are gaining traction and are likely to push up final prices. LY has said it sees synergies between its internet businesses and Kakaku's price comparison and Tabelog restaurant review sites, including referrals and integration into SoftBank's PayPay digital wallet. Gregory Salathe of Freshfields noted that a strategic partner can also offer an exit route for funds. Akihiko Manaka of Bank of America said targets are increasingly likely to auction themselves rather than negotiate with a single suitor, adding that for attractive assets, "the buyers really have to work for it."
Bain and LY raised their offer to 3,700 yen on Monday, rising to 3,720 yen if they secure KDDI's support. Kakaku's shares ended Wednesday at 3,747 yen, above both offers, which Reuters noted indicates that market participants expect further price increases.
The contest is the highest-profile Japanese takeover battle since KKR outbid Bain last year for Fuji Soft, a software firm valued at $4.1 billion. Other contested deals include CVC and KKR's bid for cosmetics maker Mandom, and Advantage Partners' counterbid against Integral for Kadoya Sesame Mills, according to the Nikkei. Financial sponsor-backed M&A totalled $24 billion in January-September, per LSEG data.
Dealmakers cited in the report said the entry of strategic buyers is a key driver. Yusuke Watanabe, a partner at Carlyle, said companies in the same sector as targets may see more growth potential than funds acting alone, so joint bids are gaining traction and are likely to push up final prices. LY has said it sees synergies between its internet businesses and Kakaku's price comparison and Tabelog restaurant review sites, including referrals and integration into SoftBank's PayPay digital wallet. Gregory Salathe of Freshfields noted that a strategic partner can also offer an exit route for funds. Akihiko Manaka of Bank of America said targets are increasingly likely to auction themselves rather than negotiate with a single suitor, adding that for attractive assets, "the buyers really have to work for it."
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