Nels Hansen

On March 17, 2026, Japan's Cabinet Office approved a bill (the "Amendment Bill") to amend the Foreign Exchange and Foreign Trade Act ("FEFTA") and submitted it to the Diet. The Amendment Bill follows an advisory opinion drafted by the Council on Customs, Tariff, Foreign Exchange and Other Transactions (the "Council") on the new structure for Japan's foreign direct investment review regime issued on January 7, 2026 (the "Advisory Opinion").

Momentum for control buyout opportunities, fueled by capital markets discipline and rising shareholder activism, is gathering across APAC Asia-Pacific PE activity in 2025—led by powerhouses Japan, Australia and Greater China—has been strong, reflecting the inroads PE houses have made in the region’s companies, incrementally more diffuse share registers and increased capital markets discipline. Together, these conditions create growing opportunities for control buyouts.

Japan’s stock market hit an all-time high in mid-August. Valuations were boosted by US President Donald Trump’s decision to delay new trade tariffs on China, but also reflect the country’s more benign economic landscape and record-breaking M&A activity. At first glance, the International Monetary Fund’s forecasts for Japanese economic growth appear lackluster, with GDP projected to expand by 0.7 percent this year and by 0.5 percent in 2026.