Overview

  • The Japanese have made a physical return to international deal making, in turn driving outbound acquisition volumes in several key sectors (eg technology & software). Subsequently, Japanese deal volumes have soared three-fold during Q2 & Q3 2021, compared to the same period at the start of the year[1]
  • This has been fuelled by the global M&A boom in 2021 - manifesting itself in Asia as an uptick of M&A activity - with a sharp rise in international acquisitions during Q2 & 3 – a trend expected to continue for the remainder of the year[2]
  • The Chinese M&A market has seen venture capital and growth private equity firms gain momentum in the last two quarters, as tech dominated Chinese deals demonstrate strong performance[3]
  • The Indian start-up ecosystem is firing on all cylinders with 30 new unicorns (2021)– attracting multiple investors and driving higher valuations[4]
  • South Korean conglomerates have been gearing up for post-pandemic growth by acquiring growth potential businesses in a buy-out spree eg E-mart’s 80% stake acquisition in eBay Korea (eBay’s e-commerce business in South Korea) for USD 2.9 bn[5]
  • Southeast Asia has witnessed an increased willingness from banks to lend, companies benefiting from the US SPACs boom, and promising GDP growth prospects[6]

In focus

Japan’s renewable energy ambition

  • Our dedicated Asia Access team takes a deep dive into the investment trends impacting M&A activity in the decarbonisation, ESG and renewable energy space – all of which have become central to Japanese overseas investment activity. This activity is not just exclusive to the energy and utility sectors however, but also encompasses diverse players across non-infrastructure segments too eg Japanese equipment manufacturers and digital solution providers

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