TOKYO, Feb 7 (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 ( ANCTF ).

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)