EQT and Bain-Led Consortium Vie for Kakaku.com in $5 Billion Takeover Battle

A fierce, six-month bidding war between private equity firms EQT and a Bain Capital-led group for Japanese internet company Kakaku.com has escalated into a nearly $5 billion showdown. The contest highlights a significant shift in Japan's corporate landscape, where competitive takeover battles, once rare, are becoming increasingly common.

The Battle for Kakaku.com

The bidding began in May when EQT made an initial offer for Kakaku.com, which operates a popular price-comparison website and the restaurant review platform Tabelog.com. Bain Capital subsequently teamed up with SoftBank Group subsidiary LY Corp to submit a rival bid, sparking a series of escalating offers, according to a Reuters report.

As of late October, EQT had raised its offer seven times, reaching a price of 3,683 yen ($23) per share. In response, the Bain and LY consortium increased its offer to 3,700 yen per share, with a potential to rise to 3,720 yen if they secure the backing of Kakaku's third-largest shareholder, KDDI. Kakaku's shares have recently traded above both offers at 3,747 yen, signaling that investors anticipate the bidding war may not be over.

A New Era for Japanese M&A

This high-profile contest is indicative of a broader trend in Japan. Financial sponsor-backed M&A deals in the country totaled $24 billion in the first nine months of the year, nearly double the $13 billion recorded in the same period of 2024, according to LSEG data. This follows other recent contested deals, including KKR's successful acquisition of Fuji Soft last year over a rival bid from Bain.

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Market experts note that the expectation of multiple bidders is fundamentally changing deal dynamics. "If it’s a good asset, the sort of company everyone wants, competition is naturally fierce, making it difficult to buy cheaply," said Akihiko Manaka, co-head of M&A in Japan at Bank of America, in a statement to Reuters. This environment is pushing target companies to favor open auctions rather than negotiating with a single suitor.

The Impact of Strategic Buyers

A key factor driving up valuations is the increasing involvement of strategic buyers—companies operating in the same sector—alongside private equity firms. In the Kakaku deal, LY Corp, which operates the Line messaging app and Yahoo Japan, sees significant synergies by integrating Kakaku's services with its own internet and payment ecosystems.

This trend of financial sponsors partnering with strategic companies is pushing final bid prices higher, as operating companies may see greater growth potential than a fund acting alone. Another recent example includes telecommunications firm Hikari Tsushin joining MBK Partners to acquire rental property manager Leopalace21, aiming to cross-sell utility services to its tenants.