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. SMBC also 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.
Professional Services: HR consolidation alongside selective investments in consulting and advertising
With 20 deals (5.5%), activity split between consolidation in HR platforms and selective expansion in consulting and advertising where client demand remains robust. YCP Holdings agreed to acquire Singapore‑based Renoir Holdings Pte. Ltd. as a wholly owned subsidiary, adding scale and delivery depth in operational improvement and execution support. Mercuria (Thailand), a Mercuria Holdings group entity, signed an MOU for a capital and business alliance with Vietnam’s S&C Joint Stock Company, reinforcing cross‑border origination and deal execution between Thailand and Vietnam. In advertising and PR, major Japan‑headquartered groups continued to acquire ASEAN digital agencies to strengthen full‑funnel capabilities as digital ad spend expands. On the HR side, portfolio reshaping advanced as Neo Career sold 100% of its Southeast Asia recruiting subsidiary Reeracoen Group at end‑2024, effectively exiting the ASEAN staffing business; Reeracoen executed an MBO and is pursuing faster, locally attuned decision‑making under independent ownership. The through‑line is clear: scale where delivery depth drives competitiveness in consulting/M&A/advertising, and tighter focus with local agility in HR.
Other Industries: Logistics, Industrial Services, Machinery, and Adjacent Areas
Sectors outside the headline groups accounted for roughly 20% of total deal count, with industrial services, logistics, and machinery forming the core. Below we summarize each.
Industrial Services: Plant and factory support capacity build‑out
With 19 deals (5.3%), buyers continued to reinforce on‑the‑ground engineering and life‑cycle services across ASEAN. Sumitomo Densetsu made two Malaysia‑based M&E engineering firms subsidiaries, strengthening installation and construction capabilities to serve both brownfield and greenfield demand. Daikin Industries announced the acquisition of Vietnam’s Anh Nguyen Trading Technical Service, an instrumentation systems integrator, broadening controls and plant‑engineering adjacency and improving service coverage. Momentum centered on expanding execution muscle where industrial capex and maintenance pipelines are thickening.
Logistics: Network expansion and digital enablement across ASEAN and South Asia
With 17 deals (4.7%), Japanese logistics groups expanded regional supply‑chain footprints while adding digital orchestration. SBS Holdings acquired 77% of PT Tangguh Jaya Pratama in Indonesia, integrating mid‑ to last‑mile trucking in Greater Jakarta and strengthening national distribution reach. In a public‑private context, SG Holdings moved Sri Lanka logistics leader Expolanka to full consolidation, deepening South Asia coverage and multimodal connectivity. On the systems side, acquirers added supply‑chain/forwarding IT capabilities—exemplified by TOPPAN’s acquisition of a Singapore supply‑chain systems developer—to support visibility, control‑tower functions, and cross‑border e‑commerce flows. Strategy paired physical network control with software to accelerate onboarding, densify lanes, and lift yield in expanding ASEAN corridors.
Machinery: Focused entries into niches and footprint rationalization
With 10 deals (2.8%), activity remained selective, reflecting entries into niche applications and operating simplification. ShinMaywa Industries acquired a Taiwan mechanical parking equipment maker via its local subsidiary, enlarging its parking‑systems franchise and service base tied to urban‑infrastructure demand. Shimadzu Corporation integrated two Indian subsidiaries across measurement instruments and medical equipment sales to improve commercial efficiency, streamline governance, and align market coverage. The sector balanced targeted expansion where Japanese product strengths map to precision or city‑infrastructure needs with entity consolidation to raise operating leverage and speed.
Next: 2. Country‑Specific Trends — M&A in Major Countries and Regions