Global M&A Hits $4.4 Trillion in 2025 with Mega-Deals Led by Energy, Health, Tech

In 2025, global mergers and acquisitions (M&A) regained momentum in a major way. Driven by easing interest rates, strategic imperatives (especially in energy, health, and technology), and regulatory backdrops that were less inhibitive in many major markets, total global deal value surged to approximately US$4.39 trillion by December 18, up roughly 45% over 2024. The U.S. was the primary engine of this growth, contributing about US$2.23 trillion from around 11,300 announced deals—suggesting that while fewer transactions took place, the deals that did closed were much larger.

The number of “mega‐deals” (transactions above US$10 billion) set new records in 2025. There were 68 such deals globally—more than in any prior full year on record—and the average transaction size of all deals climbed to nearly US$227 million. Major illustrative examples include the proposed US$85 billion merger between Union Pacific and Norfolk Southern creating a coast-to-coast railroad entity, and Electronic Arts’ US$55 billion leveraged buyout involving Saudi Arabia’s Public Investment Fund and others. These deals exemplify the scale and ambition characterizing 2025. [/p>

Strategically, several trends emerge: First, many companies are using M&A as a pillar of growth, particularly where organic expansion is slower. Sectors like healthcare (in neuroscience, oncology), energy (clean tech, infrastructure), and cyber/tech are especially active. Second, financial engineering and alternative capital—private equity and sovereign wealth—play an increasingly central role, supporting both acquiring power and fueling leveraged transactions. Third, regulatory risk remains non-trivial, especially for megadeals (e.g., transportation, rail, media), but the heavier regulatory headwinds seen in prior years appear to have eased somewhat, allowing certain large deals to advance.

Looking ahead, 2026 is likely to continue this trend of elevated deal values. The market has strong incentives: corporate balance sheets remain robust, borrowing costs (while not negligible) have moderated, and buyer confidence is elevated. Key risks include interest rate spikes, geopolitical instability affecting cross-border transactions, and uncertain regulatory moves—especially in antitrust and national security domains. Big pending deals will likely face close scrutiny. The biggest open question is not whether big deals will occur, but in which sectors and geographies—and at what valuations—particularly as economic cycles turn and inflation remains a concern.