M&A activity by Japanese companies recorded a record number of transactions from January through September this year. Greater involvement by foreign investors brought the total value to approximately $39 billion, up 40% year on year.
According to a study by recof Data, the number of M&A transactions in Japan reached 3,883 during the 9 months of this year, setting a new record for this period for the first time since 1985. Transactions involving foreign investors have expanded significantly in both number and value.
A weaker yen and policy changes related to corporate governance are supporting the market, including requirements for listed companies to improve their price-to-book ratios and measures to promote business restructuring.
Business segment divestitures have accelerated as part of the restructuring trend, with Renesas Electronics selling its timing-device business to U.S.-based SiTime. SiTime is expected to record a profit of ¥443.3 billion in the third quarter of fiscal 2026.
Tax changes are also supporting this activity, with a minimum tax rate of 30% scheduled to apply from 2027 to the portion of income exceeding approximately ¥165 million. Ahead of this change, more companies are considering asset sales, and the number of M&A transactions in the first half of 2026 reached a record-high level.