Megadeals boost deal volume 25% in 1H25 as dealmakers wrestle macro headwinds in mid-market

NEW YORK and LONDON, June 24, 2025 /PRNewswire/ -- Megadeals drove a 25 percent jump in global M&A deal volume in the first half of 2025 compared to the same period in 2024. But tariffs, stalled rates, and shaken confidence slammed the brakes on middle-market dealmaking. According to the latest M&A Highlights 1H25 report by Mergermarket, a service of ION Analytics, deal count was down 16 percent year-on-year, the lowest level in 20 years. Dealmakers paused to reassess valuations, tariff exposure, and the impact of volatile geopolitics while exploring ways to transact towards the end of the period. Still, signs of movement in AI-led sectors are positive indicators for activity in the second half of the year.

Key insights from the report

• Global trends and sector leaders: Despite a drop in deal count, global M&A volume rose 25 percent year-on-year to USD 2 trillion. Mega TMT deals drove the growth, notably OpenAI's USD 40 billion raise, Charter Communications' USD 36 billion bid for Cox Communications, and Google's USD 32 billion acquisition of Wiz. North America led with 49 percent of global volume, followed by APAC at 27 percent and EMEA at 21 percent.
• US experiences strong volume, shaky sentiment: North American M&A reached USD 970 billion, up 11 percent year-on-year, while deal count sank to its lowest since 2009. Five of the top 10 global deals were US-based, led by OpenAI, Charter Communications', and Google. Tech accounted for one-third of regional M&A. Sponsor exits and buyouts increased despite rising caution around valuation and tariff risk.
• Moderate recovery with sectoral divergence in EMEA: EMEA volume rose 2.3 percent year-on-year, signaling a moderate recovery. With OMV and Borealis's acquisition of Borouge, and Helvetia's takeover of Baloise, the chemicals and insurance sectors led the rebound. The Middle East emerged as a powerhouse with volume up 51 percent year-on-year to EUR 32 billion and average deal size doubling.
• APAC blooms, deals consolidate: Despite deal count slipping, APAC posted a record USD 572 billion in M&A, doubling year-on-year. China, Japan, and Australia led the surge, with Japan's deal value rising nearly fourfold amid corporate reforms. In China, tech, finance, and SOE restructuring drove activity. Foreign investors targeted Australia's natural resources and India's financial sector, although regulatory and geopolitical headwinds continued to challenge large-scale transactions.

Lucinda Guthrie, Head of Mergermarket, says, "Dealmakers began 2025 hoping to compress three years of M&A into one. Although March brought a burst of large-cap deals, optimism faded in April after 'Liberation Day' tariffs sent shockwaves through the market. Still, the opportunities presented by the volatility in the public markets drew attention from private capital. The public-to-private trend persisted across several markets, notably Japan, Australia, and the UK.

"A key deal driver in 1H25 has been M&A to fuel the evolving AI landscape. OpenAI executed both the largest funding round in the period and made an acquisition that marked the start of the shift from multi-touch technology to AI devices. As we move through June, corporates and dealmakers are hopeful for an end to the tariff uncertainty. Sale processes have been picking up in more tariff-resilient industries, but with new geopolitical challenges to assess, dealmakers will need to find a way to transact under the cloud of macro-uncertainty."

To download the full report, click here.

**All data accurate as of 23 June 2025.

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About ION Analytics

ION Analytics delivers personalized, targeted data and market intelligence to banks, investors, advisors and corporates, helping clients find opportunities and drive better decisions in markets ranging from equities and fixed income to infrastructure and private equity. For more information, visit https://ionanalytics.com/

About Mergermarket

Mergermarket is the premier provider of global proprietary M&A intelligence, data, and predictive analytics. With access to coverage of 1.4 million companies, almost 3,000 sponsors, and powered by 300 journalists and analysts globally, we bring transformative M&A insight and a competitive edge to capital markets professionals, shaping the future of M&A. For more information, visit https://info.mergermarket.com/

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SOURCE ION