The latest ALB Asia M&A Rankings highlight the region’s leading law firms in a market that has shown both resilience and vulnerability in the first half of 2026.

While 2025 saw Asian dealmakers regain their appetite for scale, 2026 has been marked by geopolitical shocks, energy-market disruption, and a growing gap between the region’s winners and laggards.

A Tale of Contraction and Resilience

According to ION Analytics’ Mergermarket data, Asia-Pacific (APAC) M&A generated 5,171 deals worth $490 billion in the first half of 2026, an 11% decline in volume and a 23.9% drop in aggregate value year-on-year.

Despite this contraction, jurisdictions like Japan and Australia demonstrated strong activity, showcasing the region’s ability to find opportunities amidst challenges.

Japan’s Consistent Performance

Japan has delivered several consecutive years of record activity, driven by governance reform, activist pressure, and growing acceptance of private equity.

In 2025, M&A transactions involving Japanese companies increased by 8.8% to 5,115, while aggregate deal value rose by 74.7% to 35.7 trillion yen ($229 billion).

This momentum continued into 2026, with Japanese M&A value exceeding $84 billion in the first half, up 25% from the previous six months.

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Private equity’s role in Japan’s expansion has become structural. Deloitte identifies Tokyo Stock Exchange rules on capital-efficiency disclosures as a key driver of divestments and take-private transactions.

Activism has also scaled alongside deal flow. Japan accounted for 56% of regional activity in 2025 and 32% in the first quarter of 2026.

However, the Japanese government’s recommendation to discontinue MBK Partners’ contemplated $1.8 billion take-private of Makino Milling Machine reminds that the country’s opening to foreign capital remains bounded in strategically sensitive sectors.

China’s Sharp Reversal

China’s M&A market rebounded in 2025, with disclosed deal value surpassing $400 billion, a 47% increase year-on-year.

This momentum was short-lived. Deal value on the Chinese mainland plummeted by around 40% from the second half of 2025 to $133 billion in the first half of 2026.

Hong Kong’s deal activity also suffered, falling to $10.7 billion by June 11, 2026, nearly 70% below the second half of 2025.