Global M&A Deal Value Jumps to $4.5 Trillion in 2025 as Megadeals Return

​Global mergers and acquisitions activity rebounded sharply in 2025, with total deal value climbing nearly 50% to about $4.5 trillion, according to data from London Stock Exchange Group (LSEG). The figure represents the second-highest annual total on record, surpassed only by the surge seen during the pandemic-driven boom of 2021.

A defining feature of this year’s recovery was the scale of transactions. Companies announced 68 deals worth $10 billion or more, the highest number ever recorded. While these megadeals lifted overall deal value, the total number of transactions fell 7% year on year, reaching its lowest level since 2016.

“I haven't seen large-scale M&A like this in a decade,” Tony Kim, co-president of investment bank Centerview Partners, told the Financial Times, adding that many of the transactions were “really transforming industries.”

U.S. companies played a central role in the resurgence. Deals involving U.S. targets totaled roughly $2.3 trillion, the highest share since 1998, and accounted for more than half of the estimated $135 billion in global investment banking fees, which rose 9% from the previous year.

Several high-profile transactions illustrated the renewed appetite for large-scale consolidation, including competing bids involving Netflix and Paramount for Warner Bros Discovery, as well as a proposed $250 billion railroad merger between Union Pacific and Norfolk Southern.

Dealmakers cited a more accommodating regulatory environment under the Trump administration as a factor supporting bolder transactions. “What we see with corporate clients is a willingness to take on regulatory risk for transactions that are strategic,” said Andrew Nussbaum, co-chair of Wachtell, Lipton, Rosen & Katz, in comments to the Financial Times.

Momentum was briefly disrupted in April following the announcement of sweeping U.S. tariffs, but activity rebounded quickly. Global M&A volumes exceeded $1 trillion in each of the final two quarters of the year, marking the first such back-to-back performance in four years.

Private equity activity lagged behind the broader market. Buyout deal value rose about 25% to $889 billion, as firms continued to face challenges exiting existing investments. Still, notable transactions emerged, including a $55 billion take-private of video game company Electronic Arts led by Saudi Arabia’s Public Investment Fund.

Looking ahead, banks remain cautiously optimistic. Andre Kelleners, co-head of European investment banking at Goldman Sachs, said there was “room for more activity” over the coming years, noting that sponsor-led dealmaking may still be in an early phase of recovery.