By Alex V 
Global mergers and acquisitions (M&A) have hit a record $2.6 trillion in the first seven months of 2025, the highest year-to-date tally since 2021, deal data from Dealogic shows. This boom is a 28% growth in value from last year during the same period, despite the overall volume of deals declining by 16%. What is fuelling the boom? A strong combination of AI innovation, regulatory changes, and growth hunger by corporations, despite continued uncertainty in global trade.
U.S. Megadeals and AI Push Lead the Way
Big-ticket U.S. transactions have significantly propelled the global M&A total. Notably, Union Pacific Corp’s proposed $85 billion acquisition of its smaller rival Norfolk Southern and OpenAI’s massive $40 billion funding round led by SoftBank Group reflect a bullish appetite for expansion.
M&A professionals indicate the main driver for such transactions is no longer survival consolidation but rather growth, transformation, and innovation. “What you see with deal rationale is that it’s very heavily growth-driven, and it’s rising,” EY’s Andre Veissid said.
Artificial intelligence is a major driver in this, especially. Corporates are afraid to miss the AI wave and are aggressively acquiring or investing to future-proof their products. This has led to data centre, cybersecurity, and electronic infrastructure acquisition sprees.
A Shift in Market Sentiment
In the first half of the year, the market experienced indecision. President Donald Trump’s trade tariffs and geopolitics initially curbed deal-making activity. But as optimism about the antitrust path of the U.S. government grew, boardrooms started behaving fearlessly once more.
Law and finance advisers observe that deal-making has had to accommodate persistent volatility. “Folks have become accustomed to the prevailing uncertainty,” said Slaughter and May’s Simon Nicholls, adding that many now find the post-election environment more predictable than previously.
Private equity players, which were otherwise sleeping, are now back in the M&A game. Sycamore Partners’ $10 billion offer for Walgreens Boots Alliance and rival bids by KKR and Advent for the UK’s Spectris illustrate increased private investor interest. This return introduces more liquidity and a boost to the market.
Sectoral Shift: From Health to Tech
Post-pandemic, healthcare was the leading M&A driver. Today, the tech space has taken the lead, particularly in the UK and the US. Samsung’s $1.7 billion buyout of FlaktGroup, a German data centre cooling company, is a classic example of the trend as AI-related infrastructure becomes the need of the hour. Similarly, Palo Alto Networks’ $25 billion purchase of CyberArk is the biggest EMEA deal so far this year, highlighting the need for cybersecurity in an AI era.
Global Hotspots
The United States is still the M&A hub, with more than half of global deal value. Asia Pacific M&A volume has doubled compared to last year, ahead of Europe, the Middle East, and Africa (EMEA), and it appears that global diversity in the origination of deals is on the rise.
Top 5 FAQs Regarding the Global M&A Boom
Why did global M&A value go up in 2025 even with fewer deals?
The rise in total value is driven by large-scale megadeals, especially in the U.S., where companies are making strategic bets on transformative technologies like AI. Fewer, but higher-value, deals have skewed the overall numbers upward.
What role is AI playing in this M&A surge?
AI is a significant driver, leading to acquisitions across data infrastructure, cybersecurity, and cloud computing. Businesses are competing to leverage AI in their businesses and are making acquisitions of talent, technology, and capacity to not fall behind.
How has private equity impacted the market this year?
Following a period of quiet, private equity players are back in action, committing capital to high-value, strategic deals. Their return has injected competition and vigour into the M&A market.
Where is most M&A activity taking place?
The United States dominates, accounting for more than 50% of global deal volume. But Asia Pacific is rapidly expanding, with deal-making there doubling year on year, surpassing activity in EMEA.
Is the M&A market now sustainable for the remainder of 2025?
We think the momentum will carry through. As businesses get accustomed to the new economic and regulatory landscape, second-half deal volumes should accelerate, particularly with the outlook for boardroom stability improving.
