Metzler Corporate Finance: M&A is Japan‘s Gateway to Europe

• Governance issues and shareholder interests are shaping the M&A strategies of Japanese companies
• Focus on long-term shareholder value
• The DACH region, and Germany in particular, plays an important role for M&A transactions involving Japanese companies
• Minority stakes in tech companies have come into focus

Japan is one of Asia’s most active M&A players. On average, there are around 400 outbound and inbound transactions involving Japan per year. Companies in the industrial and tech sectors account for nearly 50 percent of this total. The DACH region, and Germany in particular, plays an important role in the M&A strategy of Japanese companies—for example, in acquisitions via minority stakes. Rising stock prices and relatively high cash reserves among Japanese companies are fueling M&A activity.

These are the findings of a new study by Metzler Corporate Finance titled “Japan’s Gateway to Europe: M&A Activity in the DACH Region.” This study analyzes selected deals from the past decade and contextualizes the increased activity of Japanese companies against the backdrop of current economic and (geo)political events. “In Japan, pressure on executive boards is mounting as shareholders become increasingly demanding. In addition, stricter governance regulations are forcing management teams to realign their M&A strategies,” explains Claudius Thiell, Managing Director at Metzler Corporate Finance and co-author of the study.

While the emphasis used to be on gaining access to markets and customers and increasing market share, the focus today is more strongly on acquiring technological know-how and ensuring that transactions are driven by sound economic logic. Increasing shareholder value in the long term has become the dominant guiding principle of corporate governance. Priority is increasingly being placed on stock prices, dividends, and short-term capital gains. While yen/euro currency fluctuations influence M&A activity, they are not the decisive driver.

The DACH region, and Germany in particular, plays a key role in the M&A strategy of Japanese companies. On average, 50 significant transactions are recorded each year, 80 percent of which are acquisitions and 20 percent divestitures. “Japanese companies often opt to purchase minority stakes as a preferred and lower-risk vehicle for gaining access to Germany’s leading technology providers,” adds Thiell. At the same time, sell-side activity by Japanese companies that are exiting certain markets or divesting loss-making businesses has increased in recent years. 2026 has got off to a strong start with a number of attractive and large-scale transactions, suggesting that deal activity is likely to remain steady compared to previous years.

Metzler has been active in Japan for 25 years. In June of 2025, the newly established company Metzler Japan Holdings Inc. (MJH) officially commenced operations in Tokyo. MJH enables closer interlinking of Metzler’s business divisions and strengthens Metzler’s operational presence on the Japanese market. One of MJH’s key objectives is to expand M&A activities. Thanks to an excellent network in Japan, Metzler Corporate Finance completes a particularly high number of transactions with Japanese companies. Trust and continuity are particularly relevant aspects in German-Japanese relations.

“Our knowledge of Japanese entrepreneurs is not restricted to business; we know them personally – their mindset, decision-making processes, and strategic interests. This opens up opportunities for us that would otherwise remain hidden to the market,” says Kim Comperl, a member of the Executive Board at Metzler Bank and responsible for Metzler’s Corporate Finance division.

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