Japan has emerged as the driving force behind Asia’s M&A resurgence in 2025, generating $232bn in deal volume during the first half of the year – largely propelled by a sharp uptick in private equity activity, according to Reuters.

This record figure has been underpinned by a flurry of take-private transactions, corporate carve-outs, and governance-driven divestitures, as Japan’s public companies respond to ongoing management reform and pressure to unlock value. With ultra-low interest rates and attractive valuations, private equity firms – both global and domestic – have intensified their focus on Japan’s evolving corporate landscape.

One of the most prominent transactions saw Bain Capital acquire a $5.5bn portfolio of non-core retail assets from Seven & I Holdings. The deal is part of a broader wave of Japanese corporates offloading legacy assets, providing fertile ground for PE firms eager to deploy capital into complex carve-outs.

In parallel, private equity buyers are circling larger take-private opportunities. Bain Capital and EQT are among those reported to be evaluating a potential acquisition of cybersecurity company Trend Micro, which carries a market capitalisation of over $8.5bn.

“Carve-outs of non-core assets and take-privates will remain central to Japan’s M&A landscape,” said Yusuke Ishimaru, senior deputy head of M&A advisory at SMBC Nikko Securities. “PE funds are well-positioned to capitalise on this shift.”

The data underscores Japan’s growing strategic importance in the private equity playbook, as funds seek scalable platforms in stable jurisdictions amid global economic uncertainty.

Source: Reuters

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com.

Can`t stop reading? Read more.