TOKYO (Reuters) - Japan's Mitsubishi Chemical ( MTLHF ) said on Friday it will sell pharmaceutical unit Tanabe Mitsubishi Pharma to U.S. private equity firm Bain Capital in a deal worth 510 billion yen ($3.36 billion) as it seeks to streamline its portfolio.

Private equity-led buyouts are booming in Japan as firms increasingly carve out non-core businesses in an effort to raise corporate and shareholder value.

Bain and other foreign funds have ramped up their acquisitions, helping propel inbound mergers and acquisitions in Japan to the top of the leaderboard in Asia in 2024 for the first time since 1999.

The total value of inbound deals to Japan hit $85.5 billion in 2024, according to LSEG data, up more than 600% on the previous year, although this is inflated by the $47 billion takeover bid of Seven & i Holdings by Canada's Alimentation Couche-Tard.

Tanabe became a subsidiary of Mitsubishi Pharma in 2020 so as to generate synergies between the groups.

"Changes in the industry and business structure have reduced the potential for synergies," Mitsubishi Chemical ( MTLHF ) said in a statement.

"Large-scale investment is essential to strengthen Mitsubishi Tanabe Pharma's R&D capacity and further growth, but such investment would not be a feasible option under our ownership," it added.

($1 = 151.8400 yen)