AsianFin -- Japan is powering a sharp rebound in Asia’s mergers and acquisitions market, posting a record $232 billion in deal value during the first half of 2025, according to LSEG data.

Bankers say the momentum is likely to continue, fueled by large-scale take-private deals, overseas acquisitions, and a surge in private equity activity.

A wave of corporate governance reforms aimed at addressing persistent low valuations has attracted a flood of foreign and activist investor interest. Meanwhile, Japan’s ultra-low interest rates continue to support a favorable dealmaking environment, bankers added.

Deals involving Japanese companies more than tripled in value from the same period last year. Overall, Asia’s M&A volume reached $650 billion in the first six months of 2025—more than doubling year-on-year.