Executive Summary
In 2025, Japanese companies announced 361 cross‑border M&A transactions across the Asia‑Pacific (APAC) region (Syntax Partners survey, observation‑date basis; same hereafter). Singapore (57; 15.8%) recorded the highest number of deals, followed by China (50; 13.8%), Vietnam (42; 11.6%), Thailand (39; 10.8%), and India (37; 10.2%). By industry, Information & Communications (65; 18.0%) led the activity set, with Chemicals & Materials (13.9%), Financial Services (10.0%), Consumer & Retail (9.1%), and Healthcare (6.6%) rounding out the top tiers. We characterize 2025 as a year of accelerated portfolio reconfiguration across APAC, with geopolitical de‑risking and deepening investment in growth adjacencies advancing in parallel.
This article first reviews tallies by industry and by country/region, then broadens into sector and country trend analysis, and concludes with cross‑cutting themes and implications for 2026.
Deal Tallies
By Industry (APAC targets; 2025)
| Industry | Deals | Share |
|---|---|---|
| Information & Communications | 65 | 18.0% |
| Chemicals & Materials | 50 | 13.9% |
| Financial Services | 36 | 10.0% |
| Consumer & Retail | 33 | 9.1% |
| Healthcare | 24 | 6.6% |
| Energy & Resources | 23 | 6.4% |
| Transportation Equipment | 21 | 5.8% |
| Electronics | 20 | 5.5% |
| Professional Services | 20 | 5.5% |
| Industrial Services | 19 | 5.3% |
| Logistics | 17 | 4.7% |
| Machinery | 10 | 2.8% |
| Other Manufacturing | 10 | 2.8% |
| Real Estate | 7 | 1.9% |
| Leisure & Entertainment | 6 | 1.7% |
| Total | 361 | 100.0% |
(Figure 1) Japanese corporate M&A in APAC by industry, 2025 (Syntax Partners survey; observation‑date basis).
By Country/Region (APAC targets; 2025)
| Country/Region | Deals | Share |
|---|---|---|
| Singapore | 57 | 15.8% |
| China | 50 | 13.8% |
| Vietnam | 42 | 11.6% |
| Thailand | 39 | 10.8% |
| India | 37 | 10.2% |
| South Korea | 31 | 8.6% |
| Taiwan | 25 | 6.9% |
| Indonesia | 21 | 5.8% |
| Malaysia | 18 | 5.0% |
| Australia | 16 | 4.4% |
| Hong Kong | 10 | 2.8% |
| Philippines | 9 | 2.5% |
| Others (e.g., Myanmar) | 6 | 1.7% |
| Total | 361 | 100% |
(Figure 2) Japanese corporate M&A in APAC by country/region, 2025 (Syntax Partners survey; observation‑date basis).
1. Industry Dynamics — M&A Trends by Major Sector
Information & Communications (Digital): Continued large‑scale investment in DX and IT services
With 65 deals (18.0%), the sector again led activity. Persistent demand for enterprise DX and the outsourcing of IT services provided a clear tailwind. NTT East invested in a telecommunications infrastructure operator in Indonesia; LINE Yahoo (Z Holdings) made LINE Bank Taiwan a subsidiary; Nomura Research Institute (NRI) acquired FIIG in Australia; and AnyMind Group made a Vietnamese social‑commerce enablement company a wholly owned subsidiary, expanding digital marketing and e‑commerce support. In Singapore and India, AI/fintech investment remained active—Marubeni’s additional USD 30 million into ZMA, follow‑on rounds for VFlow Tech, and NTT Finance’s investment in Transcelestial among them. Subsidiaries of Technohorizon acquired AV/IT integration platforms in Singapore and India, pairing internal DX acceleration with the creation of new local growth engines.
Chemicals & Materials: Portfolio restructuring and selective moves into circular and low‑carbon materials
With 50 deals (13.9%), activity stayed high. In 2025, consolidation and withdrawals in China proceeded alongside selective offensive investment in environmental materials. Mitsui Chemicals decided to exit a China JV; Kuraray transferred 100% of its China resin‑sheet subsidiary to a local partner; and Teijin Frontier acquired Toyobo’s China airbag unit to strengthen competitiveness in safety components. Trading/industrial groups such as Hanwa and Daiichi Jitsugyo invested in tire‑recycling platforms in Thailand. The through‑line: reconciling environmental compliance and capital efficiency through disciplined portfolio renewal, and shifting from volume‑driven businesses to high value‑added, sustainability‑oriented positions.
Financial Services: Scaling presence in emerging Asia and adapting in earnest to digital finance
36 deals (10.0%). Large positions in banking/insurance progressed alongside strategic bets in fintech. Sumitomo Mitsui Financial Group (SMBC) invested approximately JPY 240 billion in Yes Bank (India), making it an equity‑method affiliate and strengthening its corporate‑finance reach. MUFG Bank raised its stake in RCBC (Philippines) to 24.46%, accelerating network build‑out in Southeast Asia. In parallel, restructuring advanced—Dai‑ichi Life Holdings unwound its partnership with Thai insurer OceanLife, and MUFG merged two Indonesian auto‑loan businesses. Investments by SBI Holdings, Marubeni, and others continued across payments, remittances, and lending infrastructure, with emphasis on blockchain‑ and AI‑enabled credit scoring and cross‑border payments—signaling a shift away from traditional financial models toward emerging‑market‑fit digital rails.
Healthcare: Channel expansion in ASEAN and optimization of China risk
24 deals (6.6%). Expansion of sales channels in ASEAN and a selective rethink of China exposure proceeded in tandem. Aska Pharmaceutical Holdings made Vietnam’s Hataphar a subsidiary; Suzuken invested in a South Korean pharma distributor—both moves to reinforce distribution in growth markets. Meanwhile, Eiken Chemical transferred its diagnostics subsidiary in China, and Otsuka Holdings sold a portion of its shares in a Chinese medical‑device company, tightening risk management in China. In devices and health‑tech, Japanese corporates also invested into telemedicine and access‑improving platforms in India and Southeast Asia. Net‑net, ASEAN expansion coincided with calibrated China optimization.
Consumer & Retail: Twin track of local supply‑chain internalization and digital optimization
33 deals (9.1%). Companies advanced upstream/midstream internalization to capture local demand and deepened omnichannel strategies. Tominaga Shoji Holdings brought Singapore’s Freshmart into the group; Hakutsuru acquired an Australian wine importer/wholesaler; and Mitsubishi Corporation attempted a TOB for Thai Union Group (ultimately not completed), signaling ongoing exploration of strategic alignments with local champions. In parallel, digital optimization accelerated: Baroque Japan Limited sold its China e‑commerce subsidiary and acquired a Hong Kong IT company supporting e‑commerce operators, moving beyond legacy retail models while strengthening a digital‑first backbone.
Energy & Resources: Securing resource interests and rotating capital
23 deals (6.4%). With decarbonization and economic security as context, companies reinforced stakes in strategic resources while recycling capital. Sumitomo Metal Mining acquired the remaining shares of Coral Bay Nickel Corporation (Philippines), making it a wholly owned subsidiary to secure nickel for EV battery demand under direct control. Orix exited Greenko Energy Holdings (India), describing the move as part of capital recycling and reinvestment toward higher‑growth next‑generation energy domains. Mitsui & Co. acquired 40% of Rhodes Ridge iron‑ore interests in Western Australia (≈JPY 800 billion), exemplifying large‑ticket positioning for supply security. The pattern: actively secure high‑future‑value assets (battery materials/minerals) while decisively exiting assets with uncertain earnings visibility.
Transportation Equipment: Rationalizing China exposure and seeding electrification and regional optimization
21 deals (5.8%). In China, exits and capacity rationalization accelerated: TOYO TIRE sold 86% of its China subsidiary; Bridgestone withdrew from its Shenyang TBR plant; Mitsubishi Motors dissolved an engine JV; and Honda Trading and Topy Industries divested local units. In growth markets, country‑by‑country optimization and EV‑adjacent positioning advanced: Yamaha Motor acquired Australia’s Telwater; Optimus Group bought an Australian dealer network; Mitsuba made its Indonesian subsidiary wholly owned; H‑ONE transferred its Indian entity; FCC invested in Vietnam’s DAT BIKE; and TBK entered a capital partnership with Brakes India. The barbell: compress mature‑market assets while deploying into growth and electrification.
Electronics: Supply chains reshaped; selective moves into high‑value domains
20 deals (5.5%). Companies exited commoditized segments while reallocating to automotive, medical, and precision control. TOPPAN Holdings sold its entire stake in Taiwan’s Giantplus Technology; Tamura Corporation exited a China JV. Conversely, MarkLines formed a JV with China’s leading ODM Huaqin to strengthen data businesses in automotive electronics and software; RS Technologies acquired 51% of a China camera‑module maker; Ryoden took over the Japan business of Akribis Systems; and Denka invested in a wearable electronic stethoscope start‑up. The sector reached a clear inflection, pivoting toward higher‑value applications across auto/IoT/medical optics.
2. Country‑Specific Trends — M&A in Major Countries and Regions
Singapore: Capital aggregation and capability acquisition as a financial hub and technology beachhead
With 57 deals (15.8%), Singapore topped the league table. In 2025, advanced‑technology investment and strategic M&A to acquire financial and operating capabilities ran in parallel. Marubeni invested an additional USD 30 million in ZMA (AI/data analytics), strengthening digital‑marketing capabilities; deep‑tech investors executed follow‑ons in VFlow Tech (hydrogen); and NTT Finance invested in Transcelestial (optical communications), laying groundwork for next‑generation networks. JAFCO Group transferred its Asia subsidiary to a local fund, streamlining operations and revisiting regional strategy. At the same time, AnyMind Group moved to full ownership of a Vietnamese social‑commerce enabler while acquiring an AV/IT integration platform in Singapore, horizontally scaling digital capabilities across the region. In finance, Sumitomo Mitsui Trust Bank invested in a Singapore asset manager, reinforcing cross‑border wealth‑management functions. Overall, Singapore further solidified its role as both a gateway to growth markets and a concentrator of capital and advanced capabilities for Japanese corporates.
China: Streamlining local businesses and intensifying “selection and concentration”
With 50 deals (13.8%), China stood out as the only market where exit‑type transactions materially exceeded investment‑type deals. Roughly two‑thirds of observed transactions were withdrawals or downsizings (sale/partial transfer of local subsidiaries), just under one‑third were investment‑type, and the remainder were internal reorganizations. Illustrative moves: SoftBank Group’s partial sale of Alibaba shares; Soliton Systems’ disposal of its Chinese SI subsidiary; Kurabo’s transfer of 100% of a Guangzhou chemicals unit; Maruichi Steel Tube’s stake transfer to a Taiwan partner; Altech’s sale of interests in a China affiliate; and Ahresty’s transfer of a China plant stake to a local buyer. Against a backdrop of geopolitics and slower growth, selective investment still surfaced—e.g., CyberStep’s acquisition of a Hainan investment company and Nidec’s acquisition of a Chinese scroll‑compressor manufacturer. The year skewed toward exits with targeted, high‑conviction entries.
India: Multi‑channel connection to the financial ecosystem alongside real‑economy deployments
37 deals (10.2%). Japan’s three mega banking groups moved nearly in parallel, deepening connectivity across India’s financial ecosystem. SMBC Group invested ~JPY 240 billion in YES BANK, making it an equity‑method affiliate; Mizuho Securities acquired 60%+ of Avendus Capital, securing access to an investment‑banking platform spanning growth capital, PE advisory, and wealth; and MUFG Bank invested 20% in leading NBFC Shriram Finance, tightening links to a credit‑supply platform covering consumers and MSMEs. This simultaneous connection to bank/IB/NBFC channels rewove capital, talent, and deal flows between Japan and India. On the real side, activity included Sojitz (biomethane), MOL (green‑ammonia participation announced), Honda (power‑sector start‑up), KITZ (specialty steel acquisition), KOKUYO (office‑furniture maker; ≈JPY 10 billion), and Sumitomo Corporation (sale of a truck/bus maker stake paired with an ethanol investment). With deep credit demand and expanding capital markets, lending, markets, and advisory complemented one another, setting up faster origination.
Vietnam: Continued investment and diversification; stronger “China+1” positioning
42 deals (11.6%) spread across manufacturing, distribution, services, and healthcare. TIS INTEC Group formed a capital/business alliance with NTQ Solution, reinforcing offshore capability and ASEAN expansion. AnyMind Group moved to full ownership of a social‑commerce enabler, accelerating local roll‑out of digital marketing and e‑commerce support. Lion made its JV (Merap Lion) a subsidiary to strengthen local manufacturing and sales. In logistics/infrastructure, Sumitomo Corporation increased its stake in port operator Gemadept, expanding and consolidating logistics networks. In healthcare, Aska Pharmaceutical Holdings proceeded to make Hataphar a subsidiary. Supported by stable macro conditions, a young population, and a Japan‑friendly business environment, Vietnam remains a compelling mid‑ to long‑term destination.
Thailand: Offensive/defensive reshaping centered on manufacturing, finance, and the built environment
39 deals (10.8%). In autos, DaikyoNishikawa fully consolidated DMS Tech (plastic components), strengthening supply; in building systems, Takasago Thermal Engineering acquired three Thai M&E companies, expanding construction/maintenance capacity in Southeast Asia. In food, Fuji Nihon reorganized a JV with Thai Wah and made it an affiliate; in leasing, Fuyo General Lease acquired used‑forklift operator Matehan Group, enhancing local presence. With its broad supplier base and deep manufacturing ties to Japan, Thailand’s importance remained evident. In finance, ITOCHU and Premium Group acquired stakes in Eastern Commercial Leasing Public (auto finance) and formed a partnership, while ITOCHU also unwound its long‑standing cross‑shareholding with CP Group, the country’s largest conglomerate.
Malaysia: Strengthening supply chains and adjusting footprint strategy
18 deals (5.0%). Companies reinforced supply chains across manufacturing, logistics, construction, and IT, while also revisiting their footprint. Sumitomo Densetsu made two M&E engineering firms subsidiaries to bolster installation/construction in Southeast Asia. Toyota Tsusho invested in SK nexilis Malaysia to secure EV copper‑foil supply. Nichirei Logistics Group acquired NL Litt Tatt Group to expand cold‑chain capacity. In consumer/services, Ozax acquired FKF (commercial kitchen equipment wholesaler), strengthening B2B supply to foodservice/retail. Meanwhile, INCJ sold its entire edotco stake to a sovereign vehicle, and Interspace consolidated Malaysian operations into other markets. The pattern: selective investment into strategic nodes combined with base rationalization and capital recovery.
Philippines: Energy and infrastructure come to the fore
9 deals (2.5%). While the count was modest, transactions concentrated in energy and infrastructure. Sumitomo Metal Mining fully consolidated Coral Bay (nickel), Tokyo Gas acquired 20% of a First Gen FSRU subsidiary, and an Osaka Gas subsidiary acquired all business of a local IT company to expand into urban‑infrastructure adjacencies. In finance, SMFL took 30% of RCBC Leasing & Finance. Against the “Build, Better, More” policy and a national renewables push, investments were rooted in tangible project demand.
Indonesia: Diverse execution reflecting market scale and potential
21 deals (5.8%). SBS Holdings acquired 77% of Jakarta‑based PT Tangguh Jaya Pratama (TJP) on February 28, 2025, integrating mid‑/last‑mile trucking. Rengo, via a Thai JV, agreed to acquire 60% of PT Prokemas Adhikari Kreasi (Mypak), expanding packaging manufacturing including the Bekasi, West Java plant. In venture, Spiral Ventures and Sinar Mas group’s Living Lab Ventures launched the Sinar Mas Spiral Japan Theme Fund, a USD 100 million VC to catalyze Japan–Indonesia corporate/start‑up collaboration, with LPs including Cool Japan Fund, MUFG’s Bank Danamon, and Rohto Pharmaceutical.
Australia: Large resource positions and local platform entries
16 deals (4.4%). Mitsui & Co. took 40% of Rhodes Ridge (≈JPY 800 billion). Sojitz acquired 50% of UGL’s rail/public‑infrastructure division. Colowide acquired Seagrass (steak dining in Australia/UAE); Hakutsuru acquired Farmstone (Australian wine importer). NRI acquired a fixed‑income market‑services firm; and a public‑private fund exited a Japan–Australia subsea cable SPC. Resource/energy security and local platform capture proceeded in tandem.
Taiwan: Advancing in semiconductors, batteries, and digital finance; selective exits from mature segments
25 deals (6.9%). SC Machinex (Sumitomo Corporation Group) and Marketech formed a JV in semiconductor equipment; Zeon invested in Sino Applied Technology (next‑gen battery materials); major shipping companies participated in offshore wind; and LINE Yahoo made LINE Bank Taiwan a wholly owned subsidiary, cementing its digital‑finance position. On rationalization, TOPPAN Holdings exited Giantplus Technology; Daishin Chemical increased its stake in Daiqin Chemical to 10%, reinforcing an Asia‑focused partnership. Taiwan demonstrated a dual track: deepening collaboration in critical supply chains and energy transition, while refining capital allocation via orderly exits.
South Korea: Stronger collaboration across high‑tech manufacturing and finance/innovation
31 deals (8.6%). Access expanded in communications, electronics, and pharma‑related high‑tech, alongside deeper financial/innovation ties. Sumitomo Chemical acquired HUCOM WIRELESS (wireless modules); Epson invested in Gosan Tech; Global Brain made an additional investment in Deeping Source; TimeTree concluded a capital/business alliance with SK Telecom; and SBI Holdings raised its stake in Kyobo Life to approximately 20%. In start‑up/innovation, Z Venture Capital invested in deep‑tech specialist Bluepoint, and Denka, via a co‑managed fund with Pegasus Tech Ventures (U.S.), invested in Naieel Technology (boron‑nitride nanotube materials). These cases reflect a broadening pattern of financial‑technological collaboration in Korea’s innovation ecosystem.
Hong Kong: A selective year with both withdrawals and offensive moves
10 deals (2.8%). Zojirushi made Lin & Partners Distributors a subsidiary, internalizing local sales/marketing. Baroque Japan sold a China e‑commerce subsidiary while acquiring a Hong Kong IT company supporting e‑commerce operators, strengthening its omnichannel strategy. In finance, Daiwa Securities Group invested in Digital Climate Group (digital investment bank) to expand impact‑finance initiatives across Asia and the Middle East. Meanwhile, GMO Financial Holdings sold GMO‑Z.com Forex HK (OTC FX). With geopolitics and regulatory change as context, companies selectively withdrew or pressed offense.
Other Countries and Regions
Myanmar, Bangladesh, and Sri Lanka recorded six deals combined, skewed toward reorganization—e.g., SG Holdings moving its Sri Lanka unit to full consolidation—as geopolitics and market size constrained new‑investment intensity.
3. Cross‑Cutting Themes and Macro Read‑Throughs
Managing China risk: Divestments and stake reductions progressed where regulation, geopolitics, or moderated growth undermined risk‑adjusted returns, while investments remained in defensible niches (e.g., compressors, investment platforms). A calibrated, merit‑based barbell has become standard practice.
“China+1” allocation: Large tickets in India and steady reinvestment in Vietnam, Thailand, and Indonesia signaled renewed construction of an emerging‑market portfolio anchored in scale, growth, and relative ease of access. These economies are positioned to remain core theaters for capacity relocation and local‑demand capture.
Start‑ups and open innovation: Corporate/venture capital continued to fund deep‑tech and fintech hubs in Singapore, South Korea, and India, operating as complementary routes to talent, IP, and faster commercialization for incumbents.
Infrastructure and energy: Beyond renewables and recycling, LNG and iron‑ore interests advanced supply diversification, while participation in rail and urban infrastructure aligned with public‑private frameworks that de‑risk and scale projects.
4. Implications for 2026
1) Redefine China portfolios with granular selectivity. Prune where uncertainty and normalized growth depress returns; over‑allocate to domains where end‑to‑end advantages—from R&D through after‑sales—can be sustained. Re‑underwrite JVs and minority positions with stricter economics; position‑lightening remains a live option.
2) Secure first‑mover advantages in India and ASEAN. Expect continued large‑ticket opportunities in India across financial services, manufacturing, and energy, supported by policy dialogue. In Vietnam, Thailand, and Indonesia, co‑design manufacturing relocation/expansion with capture of local demand, integrating demand‑proximate supply chains and controlled/preferred channels. Stage M&A to secure advantaged platforms and build presence progressively.
3) Deepen strategic collaboration with start‑ups. Move beyond one‑off minority checks to joint development and go‑to‑market, with clear pathways from PoC to commercialization and scale. ASEAN’s relatively permissive regulatory settings are well‑suited to rapid pilots and launches.
4) Institutionalize continuous portfolio optimization. Treat asset rotation as steady‑state. Plan for migration/integration of intangibles—brands, people, know‑how—through buy/sell cycles to shorten payback and improve ROIC.
5) Embed ESG and sustainability in core strategy and investor dialogue. Renewables and recycling are becoming both forward‑compliance and new profit pools. Strengthening supply‑chain traceability improves transparency and risk control; capital markets will reward credible integration of non‑financials into operating plans.
Conclusion
Across APAC in 2025, Japanese corporates used M&A both to recycle assets and to invest in growth, signaling a decisive shift toward dynamic portfolio management. Under an unstable external environment, management teams made more explicit choices about markets, technologies, and governance—and executed faster. In 2026, M&A will carry even greater strategic weight as companies clarify where they must win and as rapid decision‑making and capital redeployment become differentiators. Organizations that integrate strategy and execution—and investment and return discipline—into a single operating cadence will be best positioned to translate choices into enterprise value.
Methodology note
Deal counts and examples reflect Syntax Partners’ survey of APAC cross‑border M&A involving Japanese companies in 2025, compiled on an observation‑date basis.
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Article | Syntax Partners, Inc.