Pan-Asian M&A trends
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Key trends |
Japan |
China |
South Korea |
Southeast Asia |
India |
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Technology & Software dominating outbound M&A activity |
Highest share of outbound M&A (38% of total)[2] |
Highest share of outbound M&A (23% of total)[3] |
Highest share of outbound M&A (20% of total)[4] |
Top three share of outbound M&A (25% of total)[5] |
Highest share of outbound M&A (35% of total)[6] |
|
The prominence of ‘tech unicorns’ |
The Japanese Business Federation aims to help cultivate 100 unicorns worth USD 1bn by 2027[7] |
IPOs have seen a slight dip, but remain high averaged over the past five years[8] |
Tech unicorns continue to propel the local market – with over 250 unicorns expected by 2025[9] |
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|
Supply chain management & logistics driving deal flow |
Challengers in raw material procurement continue to drive outbound M&A in South Korea |
It has become a major valuation affecting due diligence factor across Southeast Asia |
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Renewable energy |
Renewable investment highest in five years at $1.2bn in Q1 [10] |
2.4x more zero emission vehicles produced YoY in Q1 2022[11] |
EV-related investment driving manufacturing sector M&A, as government seeks to ban purchases of internal combustion engine cars by 2025[12] |
Renewable energy boom across felt all SE Asian countries[13] |
Record energy storage firm SPAC deal in 2021 signalled more to come for the Indian renewable market [14] |
|
Uptick in PE activity pan-Asia |
PE buyout at record level, 34 deals in Q1 2022[15] |
PE activity accounted for ½ of all deals in Q1 2022[16] |
72% YoY increase in PE investments in Q1 2022[17] |
Areas of interest: top Asian outbound investment regions (Q1 2022)
Notes: % denotes share (by deal volume) of aggregate inbound investments in each world region, broken down by Asian investor origin 1. Others include LATAM, Africa, Middle East and Oceania
Sectors of focus: top Asian outbound activities by sector (Q1 2022)
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Regional breakdown
Our Asia experts explore these key trends within in region and discuss the local impact on M&A activity and outbound investment.
In focus: Rise of PE in Japan
The last two decades have seen dramatic shifts in Japanese PE. The market continues to evolve to match that of Western activity and increase corporate disposals, all whilst navigating the dissolution of cross-shareholdings and the residual impact of the global pandemic.
