Key Takeaways
- • Japan-related M&A reached a record 3,883 deals in January–September, the highest for that period since comparable statistics began in 1985, according to Recof Data.
- • Overseas investors completed 326 acquisitions of Japanese companies worth ¥6.2 trillion (about $39.1 billion) in the nine-month period, up 40% year-over-year and already above last year's full-year total.
- • Foreign private equity firms led major deals, including Apollo's ¥590 billion take-private of Nippon Sheet Glass and KKR's ¥500 billion purchase of Taiyo Holdings.
- • The weak yen, which briefly passed ¥163 per dollar in July, is the most direct driver, lowering acquisition costs for dollar-based investors.
- • Overall Japan-related M&A value fell about 20% to ¥22 trillion, a decline attributed to the base effect of last year's mega-deals, while investment-firm deal value rose 14% to ¥5.5 trillion.
Summary
Japan's mergers and acquisitions market has reached record levels in 2026, with 3,883 deals completed in the first nine months of the year, according to M&A research firm Recof Data. Overseas investors accounted for 326 acquisitions of Japanese companies totaling ¥6.2 trillion (approximately $39.1 billion), a 40% increase year-over-year that already exceeds last year's full-year total. Foreign private equity funds have been the most active buyers, with their purchasing power amplified by a weak yen that briefly weakened past ¥163 per dollar in July, its lowest level in roughly 40 years.
Major transactions include Apollo Global Management's acquisition of glass manufacturer Nippon Sheet Glass for approximately ¥590 billion (about $3.7 billion), taking the company private, and KKR's agreement to purchase chemical company Taiyo Holdings for approximately ¥500 billion (about $3.2 billion). Warburg Pincus acquired student dormitory operator J.S.B. for approximately ¥200 billion (about $1.3 billion). A competitive bidding contest for Kakaku.com, operator of the Tabelog restaurant review service, saw EQT launch a tender offer, after which LY Corporation partnered with Bain Capital on a counteroffer that pushed the price higher. Renesas Electronics' sale of its timing products business to SiTime is expected to generate a gain of approximately ¥443.3 billion (about $2.8 billion) in its July–September results.
Overall Japan-related M&A value declined about 20% year-over-year to ¥22 trillion (about $138.8 billion), which Recof attributes to the base effect of last year's mega-deals, including NTT's full privatization of NTT Data Group. Transaction value involving investment firms rose 14% to ¥5.5 trillion (about $34.7 billion). Foreign private equity firms also hold substantial fresh capital: EQT raised a $15.6 billion Asia-Pacific fund in April with several hundred billion yen expected for Japan, and Bain Capital plans to deploy roughly half of its $10.5 billion Asia fund, established in May, into Japanese investments.
Structural factors are also supporting activity. Since the Tokyo Stock Exchange urged listed companies in 2023 to improve capital efficiency, companies have increasingly pursued carve-outs of non-core businesses. Ministry of Economy, Trade and Industry takeover guidelines issued in 2023 have also been cited by Citigroup Global Markets Japan's Akira Kiyota as bringing Japan's M&A market closer to international practice. Tax changes are adding urgency to year-end dealmaking: from next year, the alternative minimum tax for ultra-high-income earners will tighten, with the special deduction cut from ¥330 million to ¥165 million and the applicable rate rising from 22.5% to 30%. Business succession transactions totaled 833 deals in January–September, up more than 10% and the highest for that period since 2007, per Recof Data. Daiwa Institute of Research's Nobuyuki Yoshida argued that private equity is increasingly acting as an agent of corporate restructuring rather than simply a financial investor. Meanwhile, the government plans revised foreign exchange laws, effective from January with full application from February, to broaden screening of indirect foreign investment on economic security grounds.
Major transactions include Apollo Global Management's acquisition of glass manufacturer Nippon Sheet Glass for approximately ¥590 billion (about $3.7 billion), taking the company private, and KKR's agreement to purchase chemical company Taiyo Holdings for approximately ¥500 billion (about $3.2 billion). Warburg Pincus acquired student dormitory operator J.S.B. for approximately ¥200 billion (about $1.3 billion). A competitive bidding contest for Kakaku.com, operator of the Tabelog restaurant review service, saw EQT launch a tender offer, after which LY Corporation partnered with Bain Capital on a counteroffer that pushed the price higher. Renesas Electronics' sale of its timing products business to SiTime is expected to generate a gain of approximately ¥443.3 billion (about $2.8 billion) in its July–September results.
Overall Japan-related M&A value declined about 20% year-over-year to ¥22 trillion (about $138.8 billion), which Recof attributes to the base effect of last year's mega-deals, including NTT's full privatization of NTT Data Group. Transaction value involving investment firms rose 14% to ¥5.5 trillion (about $34.7 billion). Foreign private equity firms also hold substantial fresh capital: EQT raised a $15.6 billion Asia-Pacific fund in April with several hundred billion yen expected for Japan, and Bain Capital plans to deploy roughly half of its $10.5 billion Asia fund, established in May, into Japanese investments.
Structural factors are also supporting activity. Since the Tokyo Stock Exchange urged listed companies in 2023 to improve capital efficiency, companies have increasingly pursued carve-outs of non-core businesses. Ministry of Economy, Trade and Industry takeover guidelines issued in 2023 have also been cited by Citigroup Global Markets Japan's Akira Kiyota as bringing Japan's M&A market closer to international practice. Tax changes are adding urgency to year-end dealmaking: from next year, the alternative minimum tax for ultra-high-income earners will tighten, with the special deduction cut from ¥330 million to ¥165 million and the applicable rate rising from 22.5% to 30%. Business succession transactions totaled 833 deals in January–September, up more than 10% and the highest for that period since 2007, per Recof Data. Daiwa Institute of Research's Nobuyuki Yoshida argued that private equity is increasingly acting as an agent of corporate restructuring rather than simply a financial investor. Meanwhile, the government plans revised foreign exchange laws, effective from January with full application from February, to broaden screening of indirect foreign investment on economic security grounds.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.