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.
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.
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, SMBC also raised its stake in RCBC (Philippines) to 24.46%. It affiliate 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.
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.
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.
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.
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.