According to figures from the London Stock Exchange Group, deal volumes in 2025 surged by nearly 50% compared to 2024.
A primary impetus for the expansion was an unprecedented quantity of substantial agreements: 68 transactions, each valued at over $10 billion, were declared during the year, considerably reshaping the dynamics of industries such as media, manufacturing, and infrastructure. The previous instance of global M&A volume surpassing $4 trillion was in 2021, at the height of the pandemic-induced surge.
Positive market conditions, accessible funding, and reduced regulatory burdens in the US facilitated the creation of conditions conducive to strategic transactions that might otherwise have been unattainable. As per investment advisors, the present surge in significant agreements constitutes one of the most substantial in the past decade and is exerting a transformative influence on entire sectors.
M&A operations resulted in a rise in investment banking revenues to $135 billion, a 9% increase from the prior year. More than half of this total stemmed from transactions involving US assets — $2.3 trillion, representing the largest US proportion of global M&A since 1998.
Among the most noteworthy deals of the year are the rivalry between Netflix and Paramount to acquire Warner Bros Discovery, alongside a major consolidation within the US railroad industry between Union Pacific and Norfolk Southern, potentially establishing a transcontinental entity with an approximate valuation of $250 billion.
Experts further attribute the market upturn to political cues within the US. Anticipations of deregulation under a second Donald Trump administration have propelled corporations into deals entailing heightened regulatory exposure but substantial strategic merit.
Notwithstanding a brief downturn amidst the announcement of fresh trade levies during the spring, the market swiftly rebounded. During the latter half of the year, M&A undertakings exceeded $1 trillion for a successive pair of quarters — a precedent not observed in four years.
Simultaneously, the boom in substantial transactions contrasts with the contraction in the small and medium-sized deal segment: the aggregate quantity of transactions diminished by 7%, registering the lowest point since 2016.
Private equity operations exhibited a more gradual ascent compared to the broader market, expanding by slightly over 25% to reach $889 billion. Investors continue to encounter challenges in divesting assets, despite the occurrence of several prominent take-private transactions throughout the year. The most considerable among these was the $55 billion takeover of video game developer Electronic Arts, spearheaded by Saudi Arabia’s sovereign wealth fund with backing from Silver Lake.
Analysts project that in 2026, momentum in the M&A landscape, notably from financial sponsors, will persist in its upward trajectory amidst the resurgence of the IPO sphere and pent-up need for strategic alliances.