Dealmakers in 2025 enjoyed a near-record year for mergers and acquisitions, despite a turbulent spring that threatened hopes of a broader revival. So far this year, there were 70 global deals valued at more than $10 billion each, 22 of them in the fourth quarter, according to Dealogic. Total deal value has surpassed $4.8 trillion, up 41% from 2024, though the number of deals fell 6% to 38,395, marking the second-largest year ever behind 2021.
The spike in mega deals reflects a growing focus on scale. “M&A today is all about the mega deals, the race for scale,” said Anu Aiyengar, JPMorgan’s global head of advisory and M&A. There were at least four deals above $50 billion, with two notable bids for Warner Bros. Discovery totaling over $80 billion and Paramount Skydance’s $108 billion hostile offer.
Drivers of Late-Year Rally
A more permissive regulatory environment in the U.S., coupled with a calmer macroeconomic outlook, is encouraging companies to pursue transformative deals. With antitrust scrutiny easing under the Trump administration, boards and executives are seizing opportunities for strategic acquisitions, according to Frank Aquila, partner at Sullivan & Cromwell.
Dealmakers also say valuations are rising, prompting companies to pay higher multiples while expecting their own stocks to maintain relative strength. “Valuations have been bid up and we’ve seen clients be more aggressive in terms of multiples,” said Lazard’s Mark McMaster.
Technology and AI Influence
Technology deals, particularly those tied to artificial intelligence, have played a prominent role. OpenAI raised $40 billion in funding led by SoftBank, and Aligned Data Centers was acquired for $40 billion. Morgan Stanley’s John Collins said companies are pursuing scale to invest in AI-driven changes, both in tech and across other industries.
Cross-Border and Global Trends
Cross-border M&A activity surged in 2025, reaching $1.24 trillion, the highest since 2021. U.S. and UK companies were the most targeted, while U.S., France, and Japan were the most acquisitive. Multinational companies, particularly from Europe and Japan, are investing in the U.S. to capitalize on the world’s largest market. China and Japan are also seeing strong outbound activity, with Japanese deal values boosted by high-profile transactions like OpenAI and Toyota Industries.
Corporate divestitures are rising, up 30% in volume from last year, exemplified by Holcim’s $30 billion spin-off of its North American business, Amrize. Private equity is also regaining momentum, with global buyouts reaching $1.1 trillion, a 51% increase from 2024.
Outlook for 2026
Dealmakers expect the M&A rally to continue into 2026, with $50 billion–$70 billion deals already in the pipeline and a $100 billion tech transaction not ruled out. Analysts see a multi-year run of high-value deals, fueled by scale-seeking corporations, AI-related opportunities, cross-border expansion, and corporate restructuring. While caution remains in politically uncertain markets like the UK, the global appetite for transformative deals appears set to drive another strong year for mergers and acquisitions.
With information from Reuters.