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Asia-Pacific M&A Outlook: Why India and Japan Will Lead Deals in 2026

A new S&P report has a clear forecast for the Asia-Pacific dealmaking landscape. It says India and Japan are set to be the main engines for mergers and acquisitions in 2026. This prediction comes even as the overall value of deals in the region has dipped this year. The analysis points to stable economic conditions and helpful regulatory changes as the key reasons for their continued strength.

Key Points: India Japan to Drive Asia-Pacific M&A in 2026 S&P Report

  • S&P projects stable economies and regulations will fuel 2026 M&A in India and Japan
  • India's 2025 M&A value rose to $44.89B, driven by exit deals over buyouts
  • Japan's robust $79.85B M&A value expected to grow with rate hikes and weak yen
  • Asia-Pacific M&A value fell to $382.22B by Nov 2025, with China's activity moderating
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India, Japan to remain key drivers of Asia-Pacific M&A deals in 2026: S&P Report

S&P report forecasts India and Japan as key Asia-Pacific M&A drivers in 2026, highlighting HDFC merger and NTT deals amid regional shifts.

"India and Japan are likely to remain key drivers of Asia-Pacific Mergers and Acquisitions (M&A) deals in 2026 - S&P Global"

New Delhi, December 10

India and Japan are likely to remain key drivers of Asia-Pacific Mergers and Acquisitions (M&A) deals in 2026, supported by stable economic conditions and regulatory developments, said S&P said on Wednesday.

S&P Global Market Intelligence highlighted that the Asia-Pacific's overall M&A value has dropped to USD 382.22 billion as of November 2025, reflecting a downward trend from previous years.

India's M&A transaction value increased to USD 44.89 billion, with more exit deals than buyouts, surpassing last year's total.

On the other hand, Japan's M&A value remains robust at USD 79.85 billion, with further growth anticipated due to rate hikes and a weaker yen.

Meanwhile, China's M&A activity has moderated, reaching USD 111.33 billion, its lowest in recent years, despite ongoing innovation in the technology sector, and the persisting IPOs, the report noted.

The data further highlighted that the Asia-Pacific's M&A landscape has recorded several multibillion-dollar transactions between 2020 and year-to-date 2025, with India, Japan, Australia, and Mainland China featuring prominently among the region's largest deals.

The biggest transaction in the period was India's Housing Development Finance Corp. Ltd. (HDFC) merger with HDFC Bank Ltd., valued at USD 61.09 billion. The all-stock deal created one of the world's largest financial services conglomerates, marking a landmark consolidation in India's banking and housing finance sectors.

Japan followed with a USD 40.29 billion transaction involving NTT Docomo Inc., acquired by Nippon Telegraph and Telephone Corp. on September 29, 2020, signalling strategic consolidation in the country's telecom market.

A second Japanese mega-deal emerged in 2025, with NTT DATA Group Corp. selling part of its stake for USD 16.54 billion on May 8, 2025, marking another high-value corporate restructuring in Japan's tech and communications sector.

China registered significant activity through a USD 24.07 billion asset transaction involving Shengjing Bank, announced on September 27, 2023, acquired by Liaoning Asset Management Co. Ltd.

Another large China-linked transaction was the USD 21.50 billion stake sale in Xinjiang Guanghui Industry Investment (Group) Co. Ltd., completed on January 1, 2020, reflecting extensive restructuring within Chinese conglomerates.

- ANI

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Reader Comments

P
Priya S
Interesting to see China's M&A activity moderating. While India's numbers are growing, we still have a long way to go to match Japan's volume. Focus should be on creating more homegrown giants through strategic consolidation.
R
Rohit P
More exit deals than buyouts in India? That's a bit worrying na? Hope it means Indian promoters are cashing out at good valuations and not a sign of reduced confidence. The data needs deeper analysis.
S
Sarah B
As someone working in finance in Mumbai, this report aligns with what we're seeing on the ground. The regulatory environment has improved significantly, making due diligence and closures smoother. 2026 looks promising!
V
Vikram M
Japan's robust numbers are impressive, but India's growth trajectory is steeper. The key will be to ensure these deals create real value and jobs, not just financial engineering. Hope the focus remains on sustainable growth.
K
Karthik V
Respectfully, while the headline is positive, the report says overall APAC M&A value is down. We should be cautious. Global headwinds can affect us too. Let's celebrate but not get overconfident.

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