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18 3월 2025 Insight
Webinar

Asia is still an attractive region for investment with significant demand for M&A in 2025, but businesses must be resilient, creative and patient in pursuing M&A, adapting to the new normal and finding creative ways to navigate issues.

We outline the key insights outlined in our recent M&A Outlook webinar below.

  • China is experiencing a recovery in M&A activities, with a noticeable uptick beginning in Q4 2024, driven by sectors such as EVs, renewables, TMT, and consumer.
  • India remains a bright spot with growth in manufacturing, tech, and services.
  • Japan is experiencing strong inbound investment, partly driven by a weak Yen and low interest rates, with particular emphasis on technology and digital infrastructure.
  • There is significant foreign investment interest in Indonesia across sectors such as TMT, consumer, healthcare, financial services, infrastructure, and mining.
  • The market is seeing cautious optimism in Thailand, with a focus on digital infrastructure and data centres, driven by FDI incentives and promotions.
  • Singapore, the Philippines, and Vietnam are also key drivers of activity in Southeast Asia.

  • Key sectors driving M&A activity include infrastructure (including digital infrastructure), energy (including energy transition), technology, consumer, and healthcare.
  • In the TMT sector, there is strong interest in digital infrastructure, particularly data centres, driven by the demand from cloud and AI technologies.
  • There is a high demand for infrastructure investment due to rapid urbanisation, focusing on energy (especially renewables) and transport infrastructure.
  • Growing aging populations and rising middle-class spending are driving an increase in healthcare investment, particularly in the pharmaceutical and hospital areas.

  • Increasing use of hybrid debt plus equity structures to secure downside protection and equity-like returns.
  • Trends towards heavily negotiated sale documents, creative value and deal protection mechanisms, and the use of W&I insurance.
  • Continued outbound interest from Chinese companies, with a focus on replicating successful business models and improving supply chain resilience.

  • Sellers and buyers need to reach alignment on valuations to unlock M&A activity. This can be difficult due to differing expectations and market conditions.
  • Regulatory frameworks and enforcement can vary significantly across different countries in Asia, making it complex to navigate legal and compliance issues.
  • Geopolitical conflicts create uncertainty and risk for businesses, affecting investment decisions and deal structures.
  • Inflation, interest rates, and access to debt on favourable terms can influence M&A activity. Although these have stabilised and improved, they still pose challenges.
  • Increasing complexity and sophistication of transaction structures, driven by private equity investors and large-sized businesses, can make deals more challenging to execute.
  • Different sectors face unique challenges, such as the need for substantial resources and skilled workforce in digital infrastructure, or the impact of aging populations on healthcare investments.
  • Technical issues during the execution of deals, such as due diligence processes and negotiation of sale documents, can prolong the time needed to complete transactions.

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Key contacts

Malika Chandrasegaran photo

Malika Chandrasegaran

Partner, Head of M&A, Asia, Singapore

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Elisa Hayashi photo

Elisa Hayashi

Of Counsel, Tokyo

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Jeremy Shen photo

Jeremy Shen

Partner, Hong Kong

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Lucy Curran photo

Lucy Curran

Partner, Singapore

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Nonnabhat (Niab) Paiboon photo

Nonnabhat (Niab) Paiboon

Partner, Bangkok

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Vik Tang photo

Vik Tang

Partner, Jakarta

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Disclaimer

The articles published on this website, current at the dates of publication set out above, are for reference purposes only. 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.

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Asia Mergers and Acquisitions Global M&A Malika Chandrasegaran Elisa Hayashi Jeremy Shen Lucy Curran Nonnabhat (Niab) Paiboon Vik Tang