1. Summary (Overview of M&A Activities Involving Japanese Companies)
In May 2025, Japanese companies were involved in 38 M&A transactions across the Asia-Pacific (APAC) region. The breakdown by transaction type is as follows:
- Acquisitions: 9
- Investments: 14
- Divestitures: 7
- Partial Transfers: 1
- Others: 7
By country, Vietnam recorded the highest number of deals (6), reflecting its growing importance as a strategic destination for Japanese investment.
A major transaction was announced by SMBC Group on May 9, involving the acquisition of a 20% stake in YES BANK, one of India’s largest private commercial banks. The deal, valued at approximately ¥240 billion, is expected to be completed following regulatory approvals. Upon completion, YES BANK will become an equity-method affiliate of SMBC Group and Sumitomo Mitsui Banking Corporation.
This marks one of the largest foreign investments in India’s private banking sector, where strict regulations typically limit foreign ownership. SMBC has been expanding its footprint in India through subsidiaries and strategic initiatives, including the establishment of a new India headquarters in April 2025. YES BANK, with over 1,200 branches nationwide, is known for its strength in digital banking and transaction services, and is well-positioned to benefit from India’s rapid economic growth and the shift from state-owned to private banking.
2. Notable Case Studies and Perspectives
1) Sumitomo Corporation Divests 50% Stake in Vang Phong Power Company – Accelerating Portfolio Transformation
Sumitomo Corporation announced the divestment of 50% of its stake in Vang Phong, a wholly owned subsidiary operating a coal-fired power plant in Vietnam. The plant has played a key role in supporting Vietnam’s growing electricity demand. However, under its Medium-Term Management Plan 2026, Sumitomo is accelerating its portfolio transformation to build a “No.1 Business Group” focused on competitive advantage and solving social issues. This divestment aligns with its strategy to concentrate on core strengths and drive sustainable growth.
2) Real-Tech Investments Balancing Decarbonization and Growth
UntroD, through its Real-Tech Global Fund II, invested in two energy technology startups:
- VFlowTech (Singapore): Developer of vanadium redox flow batteries for renewable energy storage in Southeast Asia and India.
- Alternō (Vietnam): Developer of high-temperature “sand batteries” for industrial and food sector decarbonization.
UntroD partnered with MOL PLUS, CC Innovation, and the Asian Development Bank to support these ventures. These investments reflect a broader push to commercialize next-generation energy technologies in Asia while addressing environmental and social challenges.
3. List of Cases Involving Japanese Companies
The report includes a detailed list of 38 transactions categorized by date, type, country, and industry. Selected examples include:
- Nomura Research Institute acquired Australian bond trading firm FIIG Holdings
- Yamashita acquired Korean welfare equipment company Human Server
- Asahi Eito Holdings formed a capital alliance with Singapore’s ECEM SINGAPORE
- Takagi Seiko divested two Chinese subsidiaries in the automotive sector
- Colowide acquired Australian steakhouse chain Seagrass Holdco
- Suzuken invested in Korean pharmaceutical distributor Dongwon Yakpin
- Terumo acquired a German pharmaceutical plant from China’s WuXi Biologics
- Oaknet fully acquired Singaporean luxury goods auction firm SG e-Auction
- Nippon Express Holdings acquired 20% of Bangladeshi logistics firm Cold Chain Bangladesh
- Sojitz acquired Singaporean healthcare provider Royal Healthcare
- Inapack acquired Vietnamese packaging firm Hoang Hai Vietnam Packaging
- RT formed a strategic alliance with Vietnamese medical DX firm Lea Bio
- Zeon Corporation invested in Taiwanese battery materials firm Sino Applied Technology
- Santec Holdings acquired Australian optical measurement firm MOG LABORATORIES
Note: In this article, “APAC” refers to countries and regions in East Asia, South Asia, Southeast Asia (including ASEAN and others), and Oceania. The list of transactions is based on observed data.