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Global M&A Activity in 1H25: An Overview

In the first half of 2025, the landscape of global mergers and acquisitions (M&A) witnessed a surprising uptick, fueled primarily by a surge in megadeals. According to the latest report from Mergermarket, a service of ION Analytics, there was a striking 25% increase in overall deal volume, yielding a total of USD 2 trillion. However, this growth comes amid significant hurdles such as rising tariffs and geopolitical uncertainties that have caused deal counts to decline by 16%, marking the lowest level seen in the past two decades.

The Megadeals Making Headlines

Several high-profile megadeals were instrumental in driving this growth. Notable transactions include OpenAI's astonishing USD 40 billion capital raise, Charter Communications’ USD 36 billion bid for Cox Communications, and Google's acquisition of Wiz for USD 32 billion. These transactions illustrate the dominance of the Technology, Media, and Telecommunications (TMT) sectors in the current market, highlighting a pivotal year for tech-related M&A activity.

Regional Highlights: North America Leads

North America remains at the forefront of this M&A volume growth, accounting for nearly 49% of global activity. The region saw M&A reach USD 970 billion, reflecting an 11% rise year-on-year. Despite this positive volume, the deal count in North America has plummeted to its lowest levels since 2009, suggesting that a cautious approach is being adopted by dealmakers. Five out of the ten largest global deals were sourced from the U.S., underscoring the high stakes and high-profile nature of transactions occurring within the country. Furthermore, tech deals comprised roughly one-third of the M&A activity in the region, indicating a robust interest in technological advancements and innovations.

EMEA Markets Show Mixed Results

In the Europe, Middle East, and Africa (EMEA) region, M&A activity exhibited a modest revival, with volumes increasing by 2.3% year-on-year. The rebound was primarily driven by significant transactions in the chemicals and insurance sectors, such as OMV's acquisition of Borealis and Helvetia's purchase of Baloise. The Middle East saw a remarkable 51% rise in deal volumes, highlighting its growing importance in the global M&A landscape with average transaction sizes also seeing substantial growth.

APAC Region Blossoms

Asia-Pacific (APAC), despite experiencing a slight decrease in the number of deals, achieved a record M&A volume of USD 572 billion, a figure that showcases a doubling year-on-year. Leaders in this growth were China, Japan, and Australia, where Japan saw its deal values rise nearly fourfold, driven by sweeping corporate reforms. In China, the tech and finance sectors, alongside restructurings of state-owned enterprises (SOEs), played a significant role in boosting M&A activity.

Strategic Adjustments Amid Uncertainty

Lucinda Guthrie, Head of Mergermarket, noted that while dealmakers started 2025 with aspirations to compress years of M&A activity into a shorter timeframe, the surge in tariffs and fluctuating market sentiments have caused many to reassess their strategies. There has been an observable trend towards private capital showing interest in public-to-private transactions, indicative of a shift in strategy as players navigate the complexities in the current environment.

The rapidly evolving AI landscape has further influenced M&A dynamics, evidenced by OpenAI leading both the funding rounds and acquisitions essential for transitioning from traditional technology to innovative AI-driven devices.

Conclusion and Future Outlook

As we look towards the latter half of 2025, there is cautious optimism among dealmakers. Many are anticipating a stabilization of the tariff climate, which could facilitate a resurgence in M&A activities across various sectors, particularly those resilient to current economic pressures. Yet, the specter of geopolitical uncertainties remains, necessitating a nuanced and strategic approach to future transactions.

For further details, please refer to the comprehensive report provided by Mergermarket.