Global M&A Surges 50% to $4.5T in 2025 Amid Record Megadeals

• 68 megadeals exceeding $10 billion each, the most ever recorded.

• U.S. companies dominated with $2.3 trillion in deals, largest share since 1998.

• Private equity deals rose 25% to $889 billion, including high-profile buyouts like Electronic Arts for $55 billion; overall deal count fell 7%.

2025 M&A activity hit $4.5T, up 50%, smashing records with 68 megadeals. Netflix, Union Pacific lead amid regulatory shifts. Explore drivers, sectors, and expert views—position your strategy now!

What drove the surge in 2025 M&A activity?

2025 M&A activity jumped nearly 50% to $4.5 trillion, according to data from the London Stock Exchange Group, marking the highest annual total since 2021’s pandemic-driven peak above $5 trillion. Companies capitalized on cheap financing, robust stock markets, and reduced U.S. regulatory oversight during President Donald Trump’s second term. Investment banks reaped $135 billion in fees, nearly a record, with over half from U.S.-involved transactions totaling $2.3 trillion—the largest share since 1998.

How did megadeals dominate 2025 M&A across key sectors?

The entertainment and transportation sectors spearheaded the year’s largest transactions. Netflix and Paramount vied to acquire Warner Bros Discovery, while Union Pacific merged with Norfolk Southern to form a $250 billion railroad giant. These moves echoed 2021’s blockbusters, such as WarnerMedia’s merger with Discovery and Canadian Pacific’s $31 billion acquisition of Kansas City Southern. Across media, rail, and industrials, companies finalized 68 deals worth $10 billion or more each—the highest number on record. Regulatory easing under Trump encouraged bolder strategies, as noted by Andrew Nussbaum, co-chair of the executive committee at Wachtell, Lipton, Rosen & Katz: “What we see with corporate clients is a willingness to take on regulatory risk for transactions that are strategic. They see a willingness of the regulators to engage in constructive dialogue.”

Dealmaking faced a brief setback in early April 2025 when Trump imposed sweeping tariffs labeled ‘liberation day’ across trade sectors. However, activity rebounded swiftly, with the second half of the year delivering two consecutive quarters exceeding $1 trillion in volume—a milestone last achieved in 2019. Daniel Mendelow, U.S. investment banking co-head at Evercore, observed: “Our momentum built post the recovery from liberation day and has just continued to build since then. There’s a lot of pent-up interest in M&A.” Tony Kim, co-president of Centerview Partners, highlighted the transformative scale: “I haven’t seen large-scale M&A like this in a decade. These are deals which are really transforming industries. Scaled M&A requires a lot of important ingredients in the mix to succeed, and we seem to have all of those elements today.”

While dollar volumes soared, the total number of deals declined 7% to the lowest since 2016, indicating consolidation among fewer but larger transactions.

What role did private equity play in 2025 M&A activity?

Private equity dealmaking grew more modestly at 25%, reaching $889 billion, lagging public company activity. Firms faced challenges in asset exits amid high market valuations, but standout buyouts sustained momentum. The largest was Saudi Arabia’s Public Investment Fund-led $55 billion takeover of Electronic Arts, backed by Silver Lake and Jared Kushner. Anu Aiyengar, global head of advisory and M&A at JPMorgan Chase, explained: “The general narrative is that sponsors are not active, but there were some large take-private transactions.” She pointed to mispriced assets attracting diverse financing sources despite record-high markets.

Emerging IPO activity offered alternative exits, with companies like Medline and Verisure listing publicly. Andre Kelleners, co-head of European investment banking at Goldman Sachs, forecasted: “Over the next couple of years there’s room for more activity, and we certainly feel the sponsor wave in particular is only just gaining momentum.” These developments underscore private equity’s adaptive strategies in a deal-rich environment.

Frequently Asked Questions

What were the biggest mergers and acquisitions deals in 2025?

The top 2025 M&A deals included Union Pacific’s merger with Norfolk Southern forming a $250 billion railroad and the contest between Netflix and Paramount for Warner Bros Discovery. Private equity highlighted the $55 billion Public Investment Fund acquisition of Electronic Arts. These 68 megadeals over $10 billion set records, per London Stock Exchange Group data.

Why did global M&A activity boom in 2025?

Global M&A activity boomed in 2025 due to low-cost financing, strong equity markets, and relaxed U.S. regulations under President Trump. This enabled transformative megadeals across sectors, despite a brief tariff-related pause. Experts like those at Centerview Partners and Evercore cite ideal conditions aligning for the $4.5 trillion surge.

Key Takeaways

• Record megadeals: 68 transactions over $10 billion transformed industries like entertainment and rail.
• U.S. dominance: $2.3 trillion in deals, highest share since 1998, boosted bank fees to $135 billion.
• Private equity momentum: 25% growth to $889 billion; watch for rising exits via IPOs and buyouts.

Conclusion

The 2025 M&A activity boom to $4.5 trillion, propelled by megadeals and favorable conditions, reshaped global industries from media to transportation. Regulatory shifts and expert optimism, as voiced by leaders at Wachtell and JPMorgan, signal sustained private equity involvement and deal flow. Businesses should monitor evolving policies and market dynamics to capitalize on this transformative wave in 2026 and beyond.