Asia and U.S. Drive Global M&A to Multi-Year Peak in 2025

As of 20 June, M&A activity experienced a boom in the first half of 2025, with a 26% higher transaction frequency compared to the prior year, totaling $2.14 trillion. Most of the deals in the first half of the year were better than before, and there are likely to be larger deals in the second half. However, other factors, such as the trade war initiated by U.S. President Donald Trump, which has increased interest rates, and geopolitical tensions, may come into play. Amazingly, a record rebound in U.S. equities and reduced market volatility have given dealmakers a shot of positivity.

In the first half of 2025, deal activity was supposed to be staggering, but it was otherwise, said Tommy Rueger, global co-head of equity capital markets at UBS. However, there is hope among analysts, as the S&P 500 and Nasdaq indices have reached new record highs. This indicates that more deals can be expected as the market stabilizes at a higher level.

Asia Leads the Charge in M&A Growth

Asia emerged as a sunshine M&A market. The M&A value in the region skyrocketed to $583.9 billion between 1 January and 30 June 2025, which is more than twice the $269.9 billion witnessed in 2025. Japan and China played a significant role in driving this growth, as Asian firms increasingly focused on regional acquisitions. Striking deals included Toyota’s $33 billion decision to privatize one of its suppliers, and Abu Dhabi National Oil Company’s offer to acquire the Australian gas firm Santos for $ 18.7 billion.

With Asia still fuelling a large percentage of the world’s M&A business, Raghav Maliah, global vice chairman of investment banking at Goldman Sachs, observed that deals between Asia and Asia would increasingly gain prominence. He said India has had a fair share of deal volumes in recent years, and the trend is expected to continue in the years to come. This is especially true with Japan being a significant driver of deal volume.

The Surge of Megadeals and Private Company Acquisitions

During the first half of 2025, several megadeals dominated the M&A market, particularly those involving private targets. Over 50% of the largest 10 transactions this year have been directed at non-public firms. Charter Communications is currently acquiring Cox Communications in a $21.9 billion deal, and Alphabet is acquiring the cybersecurity startup Wiz Inc. in a $30 billion deal. The trend in these large, high-profile acquisitions reflects the growing confidence of dealmakers in handling such substantial transactions, even in an uncertain environment.

There is also significant growth in the number of large transactions exceeding $10 billion, with a 62% increase in such transactions over the previous year during the same period. The M&A market is poised for further growth as institutional and retail investors regain confidence. This is particularly true given the significant number of private company acquisitions that dominate the deal-making landscape.

In conclusion, the second quarter of the year 2025 did not start well, but the M&A market has staged a comeback. Asia has been leading in the volume of deals made, but the U.S. market has been demonstrating improvement in tourism markets, with larger deals accompanying it. Confidence among institutions is being reinforced, with more mega deals confirmed. Moreover, the sequential changes in regulations and market stability create a conducive environment for major acquisitions towards the end of the year.