According to a report by the research company Rekof Data, the number of mergers and acquisitions (M&A) involving companies in the Kinki region of Japan reached an all-time high in 2025, with a total of 874 cases reported—over 100 more than the previous year. This surge in M&A activity is attributed to various factors, predominantly the rise in 'carve-outs' where large corporations spin off parts of their businesses, and an escalating need for business successions among companies lacking successors. The total transaction value for these M&A deals amounted to 2.684 trillion yen, marking the third-highest total in the last decade.

A significant contributor to the increase in M&A cases is the trend among large enterprises to concentrate their management resources. Noteworthy examples include Japan Tobacco’s sale of its healthcare business, including Torii Pharmaceutical, to Shionogi Pharmaceutical, as well as Panasonic Holdings' divestment of its housing solutions subsidiary to YKK. These transactions alone accounted for about 10% of the total M&A cases in the region, signifying a shift in how major companies strategize their operations.

Additionally, the report highlights a growing pattern where small and medium enterprises are turning to M&A to address succession issues, with 140 cases of business successions recorded in 2025—more than three times the number from a decade ago. With the succession crisis becoming increasingly pronounced, as indicated by a 46.5% rate of companies lacking successors in the region, local banks are beginning to establish business succession funds. The study emphasizes the government's supportive stance on enhancing M&A environments for small businesses, suggesting that M&A activity is likely to remain robust in 2026 as these trends continue to evolve.