Japan's deals surge finds a strategic market in India

Issues with China have nudged Japanese firms to look beyond their top trading partner

- Agnidev Bhattacharya

Just last week, financial powerhouse Mitsubishi UFJ Financial Group committed nearly ₹40,000 crore for a 20% stake in Shriram Finance.

(REUTERS)

Japanese companies have announced a record $359 billion in outbound and domestic mergers and acquisitions (M&A) deals so far in 2025 as December draws to a close—an increase of 54%, according to data from Bloomberg.

This has played out well for India, with deals involving Japanese acquirers in financial services bunched up towards the year-end.

Just last week, financial powerhouse Mitsubishi UFJ Financial Group committed nearly ₹40,000 crore for a 20% stake in Shriram Finance Ltd, India's second-ranked non-banking finance company by assets managed. It is the largest foreign direct investment in an Indian financial services firm to date.

Earlier in December, Mizuho Financial Group Inc. reached an agreement to acquire a controlling stake in Avendus Capital, an investment bank backed by KKR & Co. Sumitomo Mitsui Financial Group became the largest shareholder in Yes Bank in September.

In the industrial sector, JFE Steel Corp. announced buying a 50% stake in Bhushan Power & Steel Ltd, a unit of its long-term partner JSW Steel Ltd.