mergers and — 2025 was a landmark year for mergers and acquisitions, with global dealmaking soaring to $4.8 trillion, just shy of record levels. This surge came despite a tumultuous spring that cast doubt on the revival of M&A activity amid US President Donald Trump’s second term. The persistent chase for scale among companies has driven a late-year rally in dealmaking, with industry experts predicting the momentum will carry into 2026.
Mergers and: A Year of Mega Deals
The appetite for substantial transactions has been evident, with a record 70 deals globally surpassing $10 billion each, including 22 in the fourth quarter alone, according to Dealogic data. Even though the first half of the year was marked by a global trade war initiated by the Trump administration, total deal values rose by 41 per cent compared to 2024, despite a 6 per cent decline in the number of deals, which totalled 38,395.
High-Value Transactions Dominate
Noteworthy transactions included four deals exceeding $50 billion, notably Netflix’s $82 billion bid for Warner Bros. Discovery and a $108 billion offer from Paramount Skydance. As the fourth quarter progresses, deal values are already setting records in the Americas, with expectations for further announcements before year-end.
Looking Ahead to 2026
Looking into 2026, analysts predict that the trend of significant deals will continue, with numerous transactions valued between $50 billion and $70 billion already in the pipeline. “Next year could rival 2021,” stated Eamon Brabazon, co-head of global M&A at Bank of America, suggesting that the current environment could lead to a sustained period of robust dealmaking.
Shifts in Regulatory Landscape
The more permissive regulatory backdrop in the US has encouraged boards and executives to pursue transformative deals. Frank Aquila from Sullivan & Cromwell noted the administration’s openness to large combinations has prompted companies to reconsider their strategic options and pursue significant transactions.
Focus on Technology and AI
Technology continues to be a focal point in M&A activities, with two of the top ten global deals this year linked to artificial intelligence. OpenAI’s $40 billion investment round, led by SoftBank, and a similar valuation for Aligned Data Centers highlight the sector’s importance. John Collins from Morgan Stanley remarked that firms are positioning themselves to adapt to the changes AI brings.
Surge in Cross-Border Transactions
Cross-border dealmaking has also seen a resurgence, reaching its highest level since 2021, with total values rising by 46 per cent to $1.24 trillion. US and UK companies were the most targeted, while US firms led the way in pursuing acquisitions abroad. Gaurav Gooptu from BNP Paribas indicated that US companies are capitalising on the valuation disparities between regions.
Corporate Divestitures on the Rise
This year also witnessed a rise in corporate divestitures, with estimates suggesting a 30 per cent increase in volume. One of the standout transactions was Holcim’s $30 billion spin-off of its North American business, Amrize. Such moves signal a broader trend towards companies reassessing their portfolios.
Private Equity’s Comeback
Private equity has made a notable return in the M&A landscape, with global buyouts reaching $1.1 trillion, marking a 51 per cent increase from the previous year. Stuart Gent from Bain Capital noted a growing consensus between buyers and sellers, facilitating a conducive environment for transactions.
As the year draws to a close, industry insiders remain optimistic about the future of M&A, with expectations that the current cycle will not only continue but also expand, potentially reshaping sectors across the globe.
