India, Japan to drive Asia-Pacific M&A deals in 2026: S&P Report

India and Japan are poised to lead Asia-Pacific M&A activity in 2026, according to an S&P report. Despite a regional decline, India's deal value grew, and Japan's remained strong, while China's activity slowed down.

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.

Regional M&A Trends

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.

Major Transactions Across the Region

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.

India's Landmark HDFC Merger

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's Strategic Consolidations

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.

Significant Deals in China

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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