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Asia's Deal Frenzy: M&A Soars Past $1 Trillion
30 Dec, 2025
Summary
- APAC transaction volume hit $1.3 trillion in 2025, a 21% yearly increase.
- Starbucks and Burger King units in China are undergoing majority stake sales.
- Chinese PE firms are actively acquiring overseas assets and brands.
The Asian investment landscape is experiencing a significant upswing, with transaction volumes, including mergers and acquisitions, reaching $1.3 trillion in 2025. This marks a substantial 21% increase year-over-year, fueled by renewed confidence and a strong pipeline across various sectors. Major markets like China and Japan are particularly active, with Japan reporting record deal volumes. The second half of 2025 saw accelerated activity, setting a positive tone for early 2026.
China's M&A activity has surged by 19% to $385 billion, driven partly by multinationals reassessing their strategies amid intensifying local competition. Prominent examples include Starbucks and Restaurant Brands International selling majority stakes in their China businesses. This trend is expected to continue as global firms optimize assets. Additionally, M&A is enabling access to advanced technologies, with consolidation momentum building in high-growth areas like artificial intelligence.
Private equity funds, armed with substantial "dry powder," are increasingly active in China, focusing on strategic national priorities such as semiconductors and AI. Valuations in China are becoming more attractive compared to other global markets, prompting a shift in investment focus. Beyond domestic activity, Chinese firms, including HSG and FountainVest, are pursuing outbound transactions, acquiring overseas brands and assets. This expansion reflects a broader trend of measured and focused international growth.
