Overview

  • Japanese deal volumes have soared to an all-time high in 2021 since records started in 1985. Overseas acquisitions have doubled compared to the same period last year[1] as the Japanese private equity (PE) market chases the West
  • The Chinese M&A market has seen venture capital and growth private equity firms gain momentum in 2021 – particularly in technology dominated deals[2]. Today, China has the world’s second largest digital economy, reaching 38.6% of its GDP[3]
  • India’s start-up ecosystem saw 43 new unicorns[4] emerge last year. With the rise of a ‘Thras.io style’ business model[5], soaring valuations, and the lure of PEs by digital savvy start-ups, 2022 looks set to be an interesting year for Indian M&A
  • Infrastructure led the charge for South Korean M&A last year[6] as conglomerates worked to limit carbon-intensive businesses and ‘go green’ by focusing on renewable energy. With ESG causing a shuffle of priorities on corporate agendas, we explore whether this is a trend that will continue and if the billion-dollar PE appetite seen in Q4 will also manifest in 2022
  • Across Southeast Asia, Technology & Software has seen the most activity in Q4, with many of these deals focused on the SaaS or digital infrastructure space[7]. This momentum is expected to continue across Asian deal-making in 2022, with the market in pursuit of the gains seen across the West. This is set to be driven by the influx of PE capital and more allocation to Asia-focused funds - growing at the rate of 28.2% CAGR, the fastest among all investment class in the region[8]

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Regional breakdown

Our experts explore the M&A highlights seen across Asia in Q4 2021 and share an outlook for 2022.

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Special report

China's reliance on dividends from production factors, eg capital and labour, to sustain economic growth is no longer enough. Instead, the country is now looking at innovation to drive productivity - our experts explore the impact of this on M&A and share an outlook for deal activity in 2022.