Executive Summary
In the first quarter of 2026 (January–March), the number of cross-border M&A by Japanese companies across Asia-Pacific (APAC) reached 91 (Syntax Partners research, on an observation-date basis; the same applies hereafter). By country and region, Singapore led with 18 deals (19.8%), followed by China (12 deals, 13.2%), Thailand (10 deals, 11.0%) and Taiwan (9 deals, 9.9%), with Malaysia, India and South Korea each forming the mid-tier at 8 deals (8.8%). By industry, Consumer & Retail and Financials tied for the lead (12 deals each, 13.2%), followed by Electronics (11 deals, 12.1%), Chemicals & Materials (10 deals, 11.0%) and Information & Communications (9 deals, 9.9%).
By transaction type, acquisitions (35 deals, 38.5%), minority investments (22 deals, 24.2%) and capital alliances (5 deals) meant that investment-oriented transactions accounted for roughly 70% of the total. At the same time, divestment-oriented transactions—15 sales (16.5%) and 3 partial transfers—continued, centered on China. On an annualized basis, the pace works out to approximately 364 deals, broadly in line with the 361 deals recorded for full-year 2025.
While the overall volume holds at last year’s pace, the composition reveals a clear structural shift. First, although India’s share edged down year-on-year to 8 deals, every observed transaction was investment-oriented—with zero divestitures—and the investment scope spread across Financials, deep tech, Consumer and logistics tech. India’s momentum is accelerating in a manner that reflects a shift from quantity to quality. Second, Vietnam—ranked second in full-year 2025 (42 deals, 11.6%)—saw its share halve to 5 deals (5.5%), while Malaysia nearly doubled from 5.0% to 8.8%, signaling that “China-Plus-One” destinations are becoming more multipolar. This review first confirms the aggregate figures, then turns to industry- and country-level trends, before moving on to cross-cutting themes and implications for full-year 2026.
M&A Deal Tally
Deals by Industry
| Industry | Deals | Share |
|---|---|---|
| Financials | 12 | 13.2% |
| Chemicals & Materials | 11 | 12.1% |
| Electronics | 11 | 12.1% |
| Consumer & Retail | 10 | 11.0% |
| Information & Communications | 9 | 9.9% |
| Media & Entertainment | 6 | 6.6% |
| Transportation Equipment | 6 | 6.6% |
| Professional Services | 5 | 5.5% |
| Logistics | 5 | 5.5% |
| Machinery | 4 | 4.4% |
| Other Manufacturing | 3 | 3.3% |
| Industrial Services | 3 | 3.3% |
| Healthcare | 2 | 2.2% |
| Real Estate | 2 | 2.2% |
| Energy & Resources | 2 | 2.2% |
| Total | 91 | 100.0% |
(Figure 1) Q1 2026 M&A deals by Japanese companies in APAC, by industry.
Deals by Country/Region
| Country/Region | Deals | Share | FY2025 Share | Change (pt) |
|---|---|---|---|---|
| Singapore | 18 | 19.8% | 15.8% | +4.0 |
| China | 12 | 13.2% | 13.9% | −0.7 |
| Thailand | 10 | 11.0% | 10.8% | +0.2 |
| Taiwan | 9 | 9.9% | 6.9% | +3.0 |
| Malaysia | 8 | 8.8% | 5.0% | +3.8 |
| India | 8 | 8.8% | 10.2% | −1.5 |
| South Korea | 8 | 8.8% | 8.6% | +0.2 |
| Hong Kong | 6 | 6.6% | 2.8% | +3.8 |
| Vietnam | 5 | 5.5% | 11.6% | −6.1 |
| Philippines | 3 | 3.3% | 2.5% | +0.8 |
| Indonesia | 2 | 2.2% | 5.8% | −3.6 |
| Australia | 1 | 1.1% | 4.4% | −3.3 |
| Other (Pakistan) | 1 | 1.1% | 1.7% | −0.6 |
| Total | 91 | 100.0% | 100.0% | — |
(Figure 2) Q1 2026 M&A deals by Japanese companies in APAC, by country. FY2025 shares are based on the tally in our Annual Review (361 deals).
1. Industry Trends: M&A by Major Sector
Consumer & Retail: Overseas Expansion of Japanese Food and Specialty Retail, and the Acquisition of Local Brands
At 10 deals (11.0%), Consumer & Retail ranked among the top sectors, with 7 of them acquisitions—control-stake purchases aimed at full-scale entry into local markets. In Singapore, OIC Group (operator of the “Lopia” supermarket chain) brought Japanese-food specialty operator GO TO MIRAI into its group, while in the Philippines, Nissin Foods HD raised its stake in equity-method affiliate Nissin-Universal Robina Corporation to 70%, converting it into a subsidiary. In Thailand, Nichirei subsidiary Nichirei Foods acquired 99.9% of frozen-chicken processor Surapon Supreme Foods, internalizing local food-supply capacity.
In India, meanwhile, a string of investments connected Japanese capital to emerging local consumer brands via funds: DG Daiwa Ventures backed Gen-Z specialty-coffee provider First Coffee, and ENRISSION INDIA CAPITAL invested in traditional-confectionery maker GoDesi and sustainable children’s-apparel maker Smartz Wear Technology. Two directions advanced in parallel—capturing local brand strength, and securing upstream and midstream supply functions.
Financials: Selective Investment in Crypto Assets, Asset Management and Fintech
Financials totaled 12 deals (13.2%), concentrated in Singapore and reaffirming the city-state’s role as a hub for capital and financial functions. SBI Holdings acquired major crypto-asset platform operator Coinhako, and Uzabase acquired private-markets database provider Alternatives.pe. Sumitomo Mitsui Trust Bank invested in the “AIGF III” fund operated by a Singapore subsidiary of Mitsubishi Corporation, and Toyo Seikan Group HD and others participated in the “Cross Capital I” fund-of-funds—reflecting a notable allocation of capital toward asset-management and fund vehicles.
In India, Terra Motors entered a capital alliance with leading microfinance institution AROHAN, and fintech start-up the Alpaca Group acquired Zincmoney IFSC, a brokerage based in the GIFT City international financial services center—advancing connectivity into credit and capital-market infrastructure. Overall, the quarter weighted selective investment in digital finance and asset-management platforms over large equity stakes in traditional banking and insurance.
Electronics: Major Investment in Semiconductors and Advanced Materials Alongside the Streamlining of Commodity Operations
Electronics totaled 11 deals (12.1%). The most emblematic move was Kioxia HD’s investment of roughly ¥77.4 billion in Taiwan’s leading DRAM developer and designer Nanya Technology, apparently aimed at strategic collaboration within the memory supply chain. In Taiwan, a Global Brain–operated fund invested in silicon-photonics firm AuthenX, and in South Korea, Stella Chemifa entered a capital alliance with semiconductor-materials maker Soulbrain Holdings—multiple instances of concentrated investment in the semiconductor and advanced-materials supply chain.
On the other hand, commodity and mature segments were streamlined. Maxell transferred its entire stake in Chinese subsidiary Wuxi Maxell Energy, and SUMCO sold part of its stake in Taiwan’s FORMOSA SUMCO TECHNOLOGY on the market. Sony also established a joint venture with Hong Kong’s TCL Electronics and transferred its home-entertainment business to it—another instance of business-portfolio reshaping. The polarization between concentrating resources on growth areas and compressing low-margin segments was pronounced.
Chemicals & Materials: Exit from China and Selective Investment in Resource Recovery and Environmental Materials
Chemicals & Materials totaled 11 deals (12.1%). The streamlining of China operations continued, while selective investment centered on resource security and environmental response advanced in parallel. On the exit side, Yodogawa Steel Works reached a basic agreement to transfer its stake in a Chinese subsidiary (a high-tech steel-plate maker in Hefei), and Taiheiyo Cement transferred its entire stake in a Chinese cement subsidiary. On the investment side, in Malaysia, JOGMEC invested in Taiyo Koko Malaysia’s vanadium-refining business, and Nippon Steel subsidiary Nippon Steel Trading invested in steel-pipe and guardrail maker Leform Berhad—moves aimed at securing supply of critical minerals and materials.
In India, Horiba India (of the Horiba group) acquired synthetic-diamond R&D firm Pristine Deeptech, and in Taiwan, Shingi HD invested in biodegradable-plastics maker Minima Technology—laying groundwork in advanced and environmental materials. In the cosmetics field as well, Nisshin Kagaku took over Malaysian skincare OEM manufacturer Bodibasixs Manufacturing. The phased reassessment of China dependence and the reallocation toward high-value-added and economic-security-related materials—a theme carried over from 2025—continue to be at work.
Other Major Industries: Information & Communications, Media & Entertainment, Transportation Equipment, Logistics
In Information & Communications (9 deals, 9.9%), the Japan Organization for International Cooperation in Telecommunications, Broadcasting and Postal Services, together with Sumitomo Corporation and others, provided debt and equity financing to the Intra-Asia Marine Networks submarine-cable project linking Japan, Malaysia and Singapore, advancing communications infrastructure. SKY Perfect JSAT entered a capital alliance with quantum-encryption developer SpeQtral (Singapore), and Itochu with corporate IT-services provider Systex (Taiwan).
In Media & Entertainment (6 deals, 6.6%), cross-border collaboration in content and IP stood out. U-NEXT HOLDINGS established a joint venture with South Korea’s CJ ENM and TBS Holdings, and Pasona Group formed a joint venture with video-production firm VIVE STUDIOS (South Korea). Media Do acquired U.S.-based Seven Seas Entertainment, which handles Japanese, Chinese and Korean manga and light-novel translation publishing. The deepening of ties with the content industry, centered on South Korea, stands out as a new current in the quarter.
In Transportation Equipment (6 deals, 6.6%), Zero acquired Mitsui O.S.K. Lines group’s automobile-transport company Auto Carrier (Thailand), and Toyota Tsusho acquired used-vehicle business MCT Automotive Group in Australia, while Futaba Industrial transferred its entire stake in a Chinese subsidiary—regional optimization and China streamlining advancing in parallel. In Logistics (5 deals, 5.5%), an ENRISSION INDIA CAPITAL–operated fund invested in India-born logistics-tech firm Hexalog Technologies, and NIPPON EXPRESS Holdings acquired shares in Pakistan’s TCS Logistics—expanding networks across South Asia.
2. Country and Regional Trends: With a Focus on India, Vietnam and Thailand
India: Zero Divestitures, All Investment-Oriented—Qualitative Acceleration Accompanied by Sector Diversification
8 deals (8.8%). While India’s share edged down from full-year 2025 (10.2%), all 8 observed transactions in the quarter were investment-oriented—acquisitions, minority investments and capital alliances—with not a single divestiture or exit observed. This sets India apart from other major countries, and demonstrates that the “tilt toward India” highlighted in our annual review is accelerating not so much in volume as in the purity and breadth of investment.
The diversification of investment areas is also striking. In Financials, Terra Motors entered a capital alliance with microfinance institution AROHAN, and the Alpaca Group acquired GIFT City–based brokerage Zincmoney IFSC. In deep tech, the Horiba group acquired synthetic-diamond firm Pristine Deeptech; in Electronics, Hakuto acquired electronics distributor Rabyte Edge. In Consumer, DG Daiwa Ventures and ENRISSION-affiliated funds made successive investments in emerging Gen-Z food-and-beverage, traditional-confectionery and sustainable-apparel brands, and in logistics tech, an investment in Hexalog Technologies was also observed.
Notably, many of these were minority investments made through corporate venture capital (CVC) or investment funds. Rather than rushing to acquire control, the approach of using funds to establish an early foothold in India’s high-growth start-up ecosystem is taking root. Against the backdrop of a deep domestic market, a young population and expanding capital markets, India is heightening its importance as a strategic investment destination for Japanese companies in a way that goes beyond mere deal counts.
Vietnam: A Shift from “Broad and Shallow” to “Narrow and Deep,” and a Sense of Maturity
5 deals (5.5%). Vietnam—the second-largest destination in full-year 2025 (42 deals, 11.6%), behind Singapore—saw its share roughly halve in the quarter, recording the largest decline among observed countries (−6.1pt). It would be premature, however, to read this directly as a retreat; it is better understood as a qualitative shift in investment.
Of Vietnam’s 5 deals in the quarter, 4 were acquisitions: NISSHA’s purchase of medical-device maker USM Healthcare (60% stake), Kawamura Electric’s acquisition of switchboard maker ANH THY, and Hoshizaki’s additional acquisition of commercial-freezer maker ARICO (to 99.6%)—all concentrated in control stakes in manufacturing. The small-ticket investments in IT, digital and start-ups that had buoyed deal counts in 2025 thinned out, and the increase in the scale and depth of each transaction left the overall count looking lower.
A sense of maturity—after investment concentrated in Vietnam as the principal “China-Plus-One” destination in 2024–2025—is one factor behind this. Companies that have already secured a foothold may have entered a phase of shifting emphasis from new deals toward nurturing and integrating existing operations, in what may be the flip side of the investment dispersion toward Malaysia and elsewhere discussed below. That said, this quarter is a small sample of 91 deals, and the swing in a single quarter may include the effects of pullback and timing gaps, which warrant caution.
Thailand: A Mix of Offense and Defense Centered on a Broad Manufacturing Base
10 deals (11.0%). Thailand’s share held broadly in line with full-year 2025 (10.8%), reaffirming the stable standing of a country with a broad manufacturing base and deep economic ties to Japan. The hallmark was the parallel pursuit of offense and defense.
On the offensive side, Nichirei Foods acquired frozen-food maker Surapon Supreme Foods, Zero acquired a 74% stake in automobile-transport firm Auto Carrier (Thailand), and Rohto Pharmaceutical acquired wellness-related Thann Oryza—expanding local footholds across consumer goods, logistics and healthcare. On the defensive side, Bridgestone transferred the operations of its Thai-Chinese steel-cord subsidiary to a Belgian company, GMO Internet announced its exit from the digital-asset business in Thailand, and Toyo Seikan Group HD transferred part of its stake in a local can-manufacturing subsidiary. The simultaneous progress of investment in growth areas and the streamlining of non-core businesses within the same market points to a mature transaction environment.
Singapore: A Hub for Financial and Asset-Management Functions and Deep Tech
18 deals (19.8%), retaining the top spot, with its share expanding +4.0pt year-on-year. Deals concentrated in both financial and asset-management functions (SBI’s Coinhako acquisition, Uzabase’s Alternatives.pe acquisition, and participation in multiple funds including Sumitomo Mitsui Trust Bank’s “AIGF III” investment) and deep tech (SpeQtral’s quantum encryption, Pyxis Maritime’s EV vessels). Singapore further strengthened its position as both a gateway to growth markets and a base for acquiring advanced technology and financial functions.
Taiwan: Offensive Investment Centered on Semiconductors and Electronic Components
9 deals (9.9%). Taiwan’s share rose +3.0pt from full-year 2025 (6.9%), lifting it into the upper tier. The greatest symbol was Kioxia HD’s investment of roughly ¥77.4 billion in leading DRAM developer and designer Nanya Technology, apparently aimed at strategic collaboration within the memory supply chain. A Global Brain–operated fund invested in silicon-photonics firm AuthenX, Shingi HD invested in biodegradable-plastics maker Minima Technology, and Itochu entered a capital alliance with corporate IT-services provider Systex. While there was some adjustment in mature segments—such as SUMCO selling part of its stake in FORMOSA SUMCO TECHNOLOGY on the market—the overall stance was clearly offensive, centered on semiconductors, advanced materials and electronic components.
South Korea: Expanding Collaboration in Content/Entertainment and Semiconductor Materials
8 deals (8.8%). While its share held broadly in line with full-year 2025 (8.6%), a new current appeared in the substance of the deals. Collaboration in content and entertainment stood out: U-NEXT HOLDINGS established a joint venture with CJ ENM and TBS Holdings, and Pasona Group with video-production firm VIVE STUDIOS. Media Do acquired U.S.-based Seven Seas Entertainment, which handles Japanese, Chinese and Korean manga and light-novel translation publishing. In semiconductor materials, Stella Chemifa entered a capital alliance with leading maker Soulbrain Holdings, expanding its access to technology. Moves linking Japanese IP assets to Korean production and distribution functions ran in parallel with technology tie-ups in advanced materials.
Malaysia: The Rise of Resource and Infrastructure Security Themes, and the Diversification of Destinations
8 deals (8.8%). Malaysia’s share nearly doubled from full-year 2025 (5.0%), up +3.8pt, making it one of the countries that most clearly raised its presence in the quarter. The increase was driven by resource and infrastructure deals: JOGMEC invested in Taiyo Koko Malaysia’s vanadium-refining business, Nippon Steel subsidiary Nippon Steel Trading invested in steel-pipe and guardrail maker Leform Berhad, and the Japan Organization for International Cooperation in Telecommunications, Broadcasting and Postal Services, with Sumitomo Corporation and others, provided debt and equity financing to the Intra-Asia Marine Networks submarine-cable project—crystallizing an economic-security theme of securing supply of critical minerals and communications infrastructure.
Alongside this, the localization of supporting industries advanced, with Greenhouse acquiring contract-food-services firm SHF Services and GENDA acquiring karaoke operator Ottotree Entertainment. Malaysia’s increase can be read as the convergence of two factors—the crystallization of these economic-security-related investments, and the diversification of “China-Plus-One” destinations amid the easing of concentration in Vietnam—and points to a reassessment of a country equipped with an English-language environment, a mature legal system and an existing Japanese manufacturing base.
China: Continuation of “Selection and Concentration”
12 deals (13.2%). Of the 12 observed transactions, sales and partial transfers accounted for roughly half, with the continuation of “selection and concentration” clearly evident. While Maxell, Taiheiyo Cement, Futaba Industrial and Oriental Chain Mfg. transferred stakes in local subsidiaries, limited investment in high-conviction areas ran in parallel—Mitsubishi Electric invested in humanoid-robot developer Lumos Robotics Technology, and Chugoku Marine Paints acquired Dai Nippon Toryo’s Chinese paint subsidiary. While maintaining an exit-leaning posture, the “calibrated approach” of selectively deploying capital into carefully scrutinized areas continues to function.
3. Notable Themes and Macro Trends
India’s Qualitative Shift: The Normalization of CVC- and Fund-Based Investment
In the quarter, all of India’s transactions were investment-oriented, and many were minority investments made through CVC or investment funds. Rather than rushing for control, the approach of using funds to connect early to high-growth start-ups is taking root. It functions as a complement to in-house development, with a structure in which strengthening corporate innovation capacity and the growth of emerging companies reinforce one another.
The Diversification of “China-Plus-One” Destinations
Vietnam’s halved share and the relative rise of Malaysia and Thailand suggest that the dispersion of manufacturing-base investment is shifting from concentration in one location toward a more multipolar pattern. The reassessment of Malaysia—with its English-language environment, mature legal system and existing Japanese manufacturing base—appears to be playing a part.
Concentrated Investment in Semiconductor and Advanced-Materials Supply Chains
Kioxia’s investment in Nanya, Stella Chemifa’s alliance with Soulbrain and SUMCO’s stake adjustment—collaboration and realignment around memory and semiconductor materials advanced intensively in Taiwan and South Korea. From the standpoint of economic security and supply-chain resilience, capital allocation to advanced materials is gaining further weight.
Cross-Border Collaboration in Content, IP and Entertainment
Centered on South Korea, joint ventures and acquisitions in content areas—video production, distribution, publishing and manga translation—came one after another. These moves link Japanese IP assets to local production and distribution functions, and merit attention as a new current that emerged in the quarter.
4. Implications for Full-Year 2026
1) Capturing First-Mover Advantages in India and ASEAN
In India, the purity and breadth of investment are advancing beyond the matter of deal counts, and early, fund-mediated connection across Financials, deep tech and Consumer is likely to accelerate further. In ASEAN, with the destination structure diversifying from a Vietnam-centric pattern, companies that design the transfer and expansion of production functions together with the capture of local consumer markets are better positioned to launch quickly and improve their certainty of monetization.
2) The Continuous Redefinition of China Operations
Premised on regulatory uncertainty and slowing growth, the parallel pursuit of phased reduction and exit from low-margin areas alongside limited investment in high-conviction areas such as robotics is likely to continue as peacetime practice. Joint ventures and equity holdings will be reviewed against the balance of profitability and risk, and reassessments accompanied by a lightening of positions will likely remain on the table.
3) Supply-Chain Investment in Semiconductors and Advanced Materials
Against the backdrop of economic security, investment in semiconductor, advanced-material and critical-mineral supply chains is likely to gain further momentum over the full year. Collaboration and investment centered on Taiwan, South Korea and Malaysia are expected to remain at the heart of deal creation.
4) The Deepening of Start-Up Collaboration
A move from one-off minority investments toward strategic alliances that include joint development and joint market development is expected to spread. By linking access to advanced technology and high-caliber talent in India, Singapore, South Korea and Taiwan to their own business roadmaps, companies are likely to raise both the quality and the speed of their alliances.
5) Continuous Portfolio Optimization and the Integration of ESG
A mature transaction environment like Thailand’s—where investment and streamlining advance simultaneously within the same market—is likely to spread to other major countries. The mindset of swapping assets while weighing market size, competitive environment, growth potential, capital efficiency and risk is taking root as peacetime practice. Alongside this, deals related to resource recovery, environmental materials and renewable energy are likely to continue to be valued as a theme that combines getting ahead of regulation with the development of new revenue streams.
Conclusion
In APAC in the first quarter of 2026, while the overall volume of transactions held to last year’s pace, the composition revealed a clear structural shift. India showed a qualitative acceleration that goes beyond deal counts; the “China-Plus-One” destination base broadened from a single pole to many; and new investment themes—semiconductors and advanced materials, and content/IP—emerged. The configuration in which investment-oriented transactions account for roughly 70% while divestment-oriented transactions, centered on China, retain a certain weight reflects companies carefully designing market selection and technology acquisition in light of their own strengths.
In M&A strategy, the approach—not limited to 100% or majority control acquisitions—of using minority investments and funds to establish an early foothold in local markets and secure access to networks, talent and technology is functioning effectively in practice, particularly in India. Heading into full-year 2026, it is likely to become a year in which it is asked all the more clearly which markets and which products or services companies will emphasize, and what winning paths they will draw. M&A, as the means of execution, will continue to grow in strategic importance.
See the next page for the detailed deal list.