2025 Asia Report: Recap of the Year – Insight
The 2025 Asia Report sheds light on the deal-making activities in Australia throughout 2024, involving prominent corporates from Japan, Korea, China, Singapore, and Malaysia, while pinpointing significant forecasts for M&A deals in 2025. It provides insights into various thematic drivers poised to influence mergers and acquisitions, delving into the bilateral relationships between Australia and key governments in those regions and scrutinizing the broader geopolitical trends in the area.
Australia’s political landscape has experienced a notable shift with the Albanese Government’s implementation of the ‘Future Made in Australia’ policy, anticipated to bolster investments in energy transition and critical minerals projects. Additionally, an evaluation of the newly reformed merger framework within Australian antitrust regulations sets the stage for investors navigating acquisitions in the coming years.
A significant event to watch is the advent of the second Trump administration in 2025. The administration’s trade policies are emerging as unpredictable, hinting at potential tariffs on China and other nations. Any imposition of trade barriers by the US could impact countries like China, a crucial trading partner in the Asia Pacific region, including Australia, causing detrimental ripple effects across the region.
In the context of Australia’s alliance with Japan, 2024 was marked by substantial deal activities, reverting to post-COVID-19 transaction levels. One standout deal includes Renesas Electronics’ acquisition of Altium amounting to A$9 billion, setting a high water mark for Japanese M&A activities. Noteworthy acquisitions in the industrial sector include Japanese steel mills purchasing a minority stake in the Blackwater metallurgical coal mine from BHP, alongside an array of Japanese real estate investors collaborating with Australian property giants across various asset classes.
The bilateral relationship between Korea and Australia has shown a positive trend, with Hanwha Aerospace and Defence inaugurating a state-of-the-art facility in Geelong to manufacture armoured vehicles for the Australian Federal Government. Despite Korea’s internal political developments, such as the impeachment of President Yoon Suk Yeol, these instances have not thwarted the overall camaraderie shared between the two nations. Korea’s reputation as a batteries stronghold saw LG Solutions making a sizable investment of US$250 million through convertible notes in ASX-listed Liontown Resources.
The 2025 Asia Report encapsulates the pulse of the region’s dynamic M&A landscape, underlining the strategic partnerships and acquisitions reshaping the investment terrain in Australia and beyond. By highlighting key deal revelations and anticipating future trends, the report provides valuable insights into the evolving economic dynamics and geopolitical undercurrents shaping the Asia-Pacific business arena.
