M&A transactions involving Japanese companies reached 3,883 in January-September 2026, a record high. Acquisitions by overseas companies reached approximately ¥6.2 trillion, exceeding the previous year's full-year total in just 9 months. The background factors include the weak yen, capital-market reforms, and a shortage of successors.
The number of M&A transactions involving Japanese companies reached 3,883 in January-September 2026, up 5.0% year on year and setting a record for the third consecutive year. The number of acquisitions by overseas companies rose 21.2% to 326, while the acquisition value reached approximately ¥6.1957 trillion, exceeding the full-year figure for 2025 in 9 months.
The trend cannot be explained by the weak yen alone. Buyers are focusing on room to improve capital efficiency and the potential to restructure businesses. The Tokyo Stock Exchange's calls for greater capital efficiency and increased disclosure aimed at avoiding a PBR below 1 have made acquisition proposals premised on taking companies private more likely. In addition, the successor absence rate remains high at 50.1%, and demand for business succession is contributing to the M&A boom.
Cases involving low-profile materials and component manufacturers being targeted are becoming more prominent. The TOB for taking Taiyo Holdings private totaled approximately ¥490.6 billion. Following the acquisition, potential value-enhancement measures include reviewing profitability by product, organizing assets, and expanding overseas sales channels.
Going forward, taking companies private is expected to become less of an “exception,” potentially accelerating group reorganizations and reviews of business relationships. As post-acquisition results influence valuations, foreign acquisitions are increasingly being viewed not simply as sellouts but as a means of injecting growth capital.