[Energy] APAC Cross-Border M&A Involving Japanese Companies: Review 2025 and Insight for 2026

In 2025, Japanese companies executed 23 cross-border M&A transactions across the Asia–Pacific region in the energy and resources domain. Activity spanned metals and mineral resources, renewable power, LNG infrastructure, recycled materials, and broader infrastructure development. We observed pronounced country‑level patterns: the Philippines drew attention in both metal resources and LNG infrastructure, India advanced large‑scale renewable platforms, Australia saw deeper engagement in energy‑linked infrastructure, and Vietnam accelerated investments in circular materials. These movements collectively reflected a strategic push to secure resources, expand renewable capacity, mobilize private capital into infrastructure, and support decarbonization pathways.

Philippines: Expanding Presence in Metal Resources and LNG Infrastructure

The Philippines emerged as a focal market at the intersection of resources and energy infrastructure. Sumitomo Metal Mining completed the full acquisition of Coral Bay Nickel Corporation, a nickel refining operation, thereby reinforcing supply security for EV battery materials and enhancing control over quality and traceability. In parallel, Tokyo Gas acquired a 20% stake in FGEN LNG Corporation, an owner‑operator of a floating LNG receiving terminal. We view these transactions as complementary: resource‑side integration in battery metals, coupled with midstream gas infrastructure to stabilize power supply and enable fuel switching. Behind this momentum lie three structural drivers—delays in renewable deployment, persistent challenges in grid reliability, and the Philippines’ endowment in metal resources—which together create room for Japanese strategic capital on both the “resources” and “infrastructure” axes.

India: Large-Scale Renewable Platforms Continue to Attract Strategic Capital

India maintained its status as one of the world’s largest renewable investment markets. Orix engaged in the restructuring and partial divestment of businesses associated with Greenko Energy Holdings, contributing to a reconfiguration of the corporate foundation underpinning the country’s renewable portfolio. We assess India as a multi‑technology market—solar, wind, storage, and increasingly green hydrogen—where Japanese participation can be structured through flexible capital placements, joint platforms with local partners, and staged commitments. Local content requirements and the scale of the addressable market provide compelling reasons to establish early operating alignment and optionality for follow‑on development.

Australia: Deeper Involvement in Energy-Linked Infrastructure Development

Australia remained central to resource and energy value chains—iron ore, LNG, and coal—while simultaneously expanding renewable infrastructure. Against this backdrop, Sojitz acquired a major infrastructure development company, thereby strengthening direct access to foundation assets that support energy and resources transportation. We interpret this as part of a broader trend to integrate resources, infrastructure, and supply‑chain control, positioning investors to manage volatility in commodity cycles while participating in the build‑out of next‑generation energy networks.

Vietnam: Scaling Investments in Metal Recycling and Circular Materials

Vietnam saw increased activity in recycled and circular materials. Marubeni invested in NM2, an aluminum recycling company, to reinforce a localized, lower‑carbon supply chain for metal inputs. As decarbonization pressures intensify and primary material costs remain volatile, we assess metal recycling and circular feedstocks as an attractive theme that hedges price risk while aligning with regulatory and customer expectations. The move also complements broader ASEAN strategies to localize inputs in proximity to manufacturing clusters.

Notable Transactions (2025)

Sumitomo Metal Mining’s full acquisition of Coral Bay Nickel in the Philippines signaled a clear commitment to upstream security for EV materials. Tokyo Gas’s minority investment in FGEN LNG advanced LNG supply stability and the capture of fuel‑switching demand. Orix’s involvement in Greenko‑related restructuring in India supported portfolio realignment in one of the region’s cornerstone renewable platforms. Sojitz’s acquisition of a large Australian infrastructure developer provided direct exposure to assets underpinning energy and resources logistics. Marubeni’s investment in Vietnam’s NM2 strengthened the circular‑materials backbone for regional manufacturing.

Structural Takeaways from 2025

We see four enduring themes likely to carry into 2026. First, the dual mandate of decarbonization and resource security accelerated capital deployment: competition for EV‑grade metals intensified at the same time that LNG terminals and renewable platforms attracted strategic interest as transition enablers. Second, in ASEAN, energy security through private‑sector infrastructure advanced, particularly in the Philippines and Vietnam, where LNG import capacity and metal‑recycling supply lines help underpin industrial and household energy stability. Third, India and Australia emerged as the two scale markets combining volume with infrastructure depth: India on the renewables side with multi‑gigawatt platforms, and Australia through its integration of resources, midstream, and grid‑adjacent projects—both well suited to long‑duration asset investment from Japanese corporates. Fourth, recycled materials and the circular economy gained traction as a distinct resources theme, providing both emissions benefits and a hedge against primary commodity price swings; we expect rising M&A in the combined space of renewables, recycling, and decarbonization solutions through 2026.

Macro Backdrop and Valuation Considerations in Energy & Resources

Valuation in this domain is shaped by several sector‑specific factors. Commodity price volatility and long‑term offtake remain central: in metals such as nickel and copper, and in LNG, the presence and tenor of resource rights or offtake contracts meaningfully influence enterprise value and risk allocation. Decarbonization policy is lifting the relative value of renewable generation, energy‑efficiency infrastructure, and metal‑recycling assets as regulatory tightening and customer procurement standards raise the premium on lower‑carbon supply. In infrastructure transactions, operating history—capacity factors, utilization rates, regulatory compliance, and concession quality—sits at the core of valuation and debtability. Finally, in emerging markets, regulatory stability is a prerequisite for long‑term capital; we observe that partner selection, contractual robustness (including step‑in and dispute mechanisms), and alignment on capex phasing are decisive in determining whether cross‑border M&A ultimately meets strategic objectives.

Syntax Partners, Inc.