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Japan’s diversified investment into Australia over the last 10 years has seen its ranking rise to second spot, behind the United States, in foreign direct investment. Prompted by Australia’s position in Asia, stable economy, strong population growth forecasts, and sound legal system, Japan is now investing in a number of mid-market deals in ‘non-traditional’ consumer-focused sectors.
Between January 2017 and February 2018, there were 38 completed M&A deals inbound from Japan into Australia. These deals showcase a distinct ‘second trend’ of direct investment into Australia. This trend of investing in ‘non-traditional’ consumer-focused sectors was initiated in 2007 by the Kirin, Asahi and Dai-Ichi Life deals and has continued at an accelerated pace under Abenomics. The average investment value of the reviewed deals was A$243 million and only 4 transactions exceeded A$500 million. Importantly for Australia, there were 19 new entrants into the market, further strengthening the existing bilateral relationship.
The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2025
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