This is our fourth annual review of Japan-Australia M&A transactions and prevailing the trends driving cross-border investment.
Our review reveals a positive story for the Japan-Australia investment relationship. While the COVID-19 pandemic had an impact on Japanese investment in Australia in 2020, resulting in lower overall deal count and value compared to the previous three years, it did not redefine the underlying trade and investment relationship. The exciting news is that sector diversification has continued – hydrogen, renewable energy and ESG being the defining trends – and Japanese companies are becoming increasingly sophisticated in both the way they invest and implement post-merger integration. We expect the relationship to further strengthen in the next 18-24 months, with 2021 already enjoying an active start.
In this article, we review the transactions from 2020, key drivers for the future, and make our predictions for 2021 and beyond.