12 Key drivers include corporate governance reforms, regulatory changes, and a growing influence of shareholder activism (May Sakai) “We are seeing a sustained and positive trend in increasing M&A deal volume in Japan, supported by an increase in transactions involving private equity firms, agrees Ms. May Sakai (MoFo). “Several external factors are contributing to this momentum, including a weaker yen, shifting investor priorities in the global market, and a growing willingness among traditionally conservative Japanese companies to engage with outside investment, including from private equity. Through our M&A practice, we are observing the increasing appeal of Japanese companies as acquisition targets. This is also evident in the increasing number and size of transactions that our firm has advised on involving senior and mezzanine lenders financing private equity acquisitions of Japanese targets. Domestically, the M&A landscape is becoming more dynamic and open. Key drivers include corporate governance reforms, regulatory changes, and a growing influence of shareholder activism. Management of Japanese companies are placing a greater emphasis on enhancing shareholder value, which is fueling both strategic acquisitions to build on core strengths and divestitures of non-core assets. We expect continued growth in domestic, inbound and outbound M&A transactions.” What should investors abroad know about the hottest sectors in Japan? Mr. Tokura adds: “Japan is home to worldleading industries such as robotics, green energy, and fintech. These sectors are driven by cutting-edge innovation, robust government support, and favorable market conditions.” Japan is a global leader in industrial automation and AI-powered robotics “Japan is a global leader in industrial automation and AI-powered robotics, with companies like Fanuc, SoftBank Robotics, and Yaskawa Electric at the forefront of innovation. The global demand for robotics is expected to grow significantly, fueled by labor shortages and the need for operational efficiencies, making this sector highly attractive for investment. Japan’s transition to renewable energy is a cornerstone of its economic strategy Japan’s transition to renewable energy is a cornerstone of its economic strategy. The government’s Green Growth Strategy actively promotes investments in hydrogen technology, offshore wind projects, and energy storage systems. Japan is a global leader in hydrogen innovation, with companies such as Toyota and Kawasaki Heavy Industries pioneering hydrogenpowered vehicles and infrastructure development.
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