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In this paper, we study the access to the Japanese domestic market by Foreign Direct Investment (FDI) and especially Mergers and Acquisitions (M&A). We first analyze the legal reforms carried out in Japan during the last fifteen years as well as their direct and indirect impact on both incoming FDI flows and M&A. We examine major changes in the legal framework in Japan and their direct and indirect consequences for FDI and M&A. We then evaluate the consequences of this new legal framework on FDI flows and M&A in Japan at both the geographical and the industrial level. We show that when specific legal measures and deregulation processes affect specific industries, FDI flows and M&A are more important than in other industries.