We are delighted to share with you our bilingual Japanese Outbound M&A Update for 2019, our biannual publication in which we review the sector and geographic trends, as well as drivers of and challenges in, outbound M&A from Japan.
Highlights*
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Japanese M&A remained predominantly an outbound M&A story – outbound (USD98.8 billion, 334 deals) v inbound (USD12.4 billion, 37 deals). Outbound deal volume increased (from 311 to 334 deals) but value dropped significantly (USD171.8 billion to USD98.8 billion) – without the 2018 Takeda Pharmaceutical-Shire acquisition (USD79.7 billion) though deal value was slightly up.
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Japan outbound M&A remained resilient despite global cross border M&A declining 7% on geopolitical uncertainties and increasing regulatory oversight – in particular in Europe and the Asia-Pacific region M&A was down by over 20% in value. Japanese companies outspent China for the second year in a row to be the biggest dealmakers in Asia in 2019.
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The US remained the top destination for outbound M&A, with Australia also remaining one of the top jurisdictions. The US and Australia accounted for over 60% by deal value. By deal volume, the UK and Germany remained the top destinations in Europe and for the Asia-Pacific region, India made the top of the list followed by Australia.
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Technology, Industrial & Chemicals, Real Estate, Healthcare and Financial Services were the top sectors in 2019. An increased focus on sustainability as more Japanese corporates adopt sustainability development goals (SDGs), is driving increased investment in renewables, battery storage and electric vehicles.
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Various domestic and global factors continue to support outbound M&A – a shrinking domestic market, access to funds, asset recycling, technology disruption and increased Japanese government support.
* Based on Mergermarket 2018 and 2019 data.
To read the full analysis, please download the report in Japanese or English below.
