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Global dealmaking surpassed $4tn this year, reaching a milestone not seen since the boom of 2021. A surge in megadeals contributed to this record-breaking figure, boosting investment banking fees to their second-highest level ever.
A total of 68 deals valued at $10bn or more each reshaped various sectors, from media to industrials. Companies capitalized on favorable market conditions, accessible financing, and relaxed US regulations to pursue strategic transactions that would have been challenging in different circumstances.
According to data from the London Stock Exchange Group, worldwide mergers and acquisitions surged by nearly 50% to $4.5tn. This marks the second-highest total in over four decades, surpassed only by the dealmaking frenzy of 2021 amidst the pandemic.
Tony Kim, co-president of investment bank Centerview Partners, remarked, “I haven’t seen large-scale M&A like this in a decade. These deals are truly transforming industries. Scaled M&A requires a mix of crucial ingredients to succeed, and we seem to have all those elements today.”
The flurry of transactions propelled investment banking fees to an estimated $135bn, a 9% increase from the previous year. More than half of these fees originated from the US, with $2.3tn in deals involving American targets—the highest share since 1998.
Mark McMaster, global head of M&A at Lazard, noted, “The current risk appetite is robust, supported by favorable financing terms and antitrust environments. Consequently, we are witnessing a ‘all systems go’ dynamic in completing most deals.”
The two largest deals of the year were the high-stakes battle between Netflix and Paramount for Warner Bros Discovery and the monumental railroad merger between Union Pacific and Norfolk Southern, creating a $250bn transcontinental powerhouse.
The trend mirrors 2021, the only year when dealmaking surpassed 2025 levels. Two of the biggest deals then were WarnerMedia’s merger with Discovery and Canadian Pacific Railway’s $31bn acquisition of Kansas City Southern.
Top dealmakers attributed the surge in activity to the Trump administration’s efforts to relax regulations, encouraging companies to consider strategic tie-ups they might have hesitated to pursue previously.
While US dealmakers anticipated a resurgence in activity under Donald Trump’s second term, the imposition of “liberation day” tariffs in early April briefly halted progress. However, dealmaking regained momentum in the following weeks, culminating in consecutive quarters of over $1tn in M&A for the first time in four years.
Despite the surge in megadeals, smaller transactions experienced a decline, with the overall number of deals dropping by 7% to levels not seen since 2016.
Private equity dealmaking lagged behind the broader recovery, with a modest increase of just over 25% to $889bn. Although buyout groups faced challenges in selling assets, notable take-private deals emerged, including the $55bn acquisition of video game maker Electronic Arts led by Saudi Arabia’s Public Investment Fund.
The outlook for private equity was brightened by a rise in large initial public offerings, such as those of Medline and Verisure, providing an alternative avenue for asset disposal.
Looking ahead, there is optimism for increased private equity activity in the coming years, with the sponsor wave gaining momentum and mispriced opportunities continuing to exist in the market.
In conclusion, the surge in megadeals and the resilience of the M&A landscape underscore the dynamism and adaptability of the global dealmaking environment in the face of evolving market conditions.
