Herbert Smith Freehills is pleased to present the sixth annual report on Japan-Australia M&A and partnertships, and the prevailing trends driving cross-border investment.
In this report, we review the M&A transactions and partnerships from 2022, key drivers for the future, and our predictions for 2023 and beyond.
Our report reveals there has been a step change in the Japan-Australia relationship in the last 12-18 months. Changes in the global geopolitical environment have brought the two countries closer together as trusted partners, particularly in the mutual pursuit of decarbonisation and energy security.
Japanese M&A and investment activity in Australia was significantly higher in 2022 than 2021. Investments occurred across a broad number of sectors, including energy, technology, financial services, real estate, consumer, infrastructure, construction/housing and services. The energy and technology sectors were especially attractive targets for investment.
In that context partnerships have also flourished as the third paradigm for Japanese investment in Australia. A total of 51 partnerships were announced in 2022, 39 of which were related to decarbonisation or energy security. New energy-related partnerships that were signed in 2019-2021 are now progressing to proof of concept and implementation phases as the projects aim for commercialisation by 2030.
It is an exciting time for the Japan-Australia relationship, which is now a closely aligned partnership with broader government support and business collaboration, and greater bilateral cooperation than ever before.
