The global mergers and acquisitions market roared back to life in 2025, with total deal value reaching $4.5 trillion according to London Stock Exchange Group (LSEG) data. The surge marks the second-highest annual total on record, trailing only the pandemic-era frenzy of 2021.

Global M&A Surges to $4.5 Trillion in 2025

What really defined this year was the sheer size of individual transactions. Companies announced 68 deals valued at $10 billion or more, an all-time high that reshaped everything from media to railroads. These megadeals accounted for a disproportionate share of total activity, even as the overall number of transactions fell 7% to the lowest level since 2016.

"I haven't seen large-scale M&A like this in a decade," Tony Kim, co-president of investment bank Centerview Partners, told the Financial Times. "These are deals which are really transforming industries. Scaled M&A requires a lot of important ingredients in the mix to succeed, and we seem to have all of those elements today."

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American companies drove much of the year's activity, with deals involving US targets totaling $2.3 trillion - the highest proportion since 1998. Those transactions generated more than half of the estimated $135 billion in investment banking fees, up 9% from last year.

The two biggest deals exemplify the year's bold dealmaking: Netflix and Paramount are battling for control of Warner Bros Discovery, while Union Pacific and Norfolk Southern are pursuing a $250 billion railroad merger Merger A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d Read this Term that would create a transcontinental giant.

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Both scenarios echo 2021's megadeal landscape, when WarnerMedia merged with Discovery and Canadian Pacific Railway acquired Kansas City Southern for $31 billion.

Trump Administration Shifts Regulatory Landscape

Dealmakers pointed to loosened regulatory oversight under the Trump administration as a catalyst for bolder transactions. Companies that might have hesitated to pursue transformative deals in previous years felt more comfortable taking on regulatory risk.

"What we see with corporate clients is a willingness to take on regulatory risk for transactions that are strategic," Andrew Nussbaum, co-chair of the executive committee at law firm Wachtell, Lipton, Rosen & Katz, told FT. "They see a willingness of the regulators to engage in constructive dialogue."

The path wasn't entirely smooth. Trump's sweeping "liberation day" tariffs announced in early April temporarily froze activity as companies reassessed their plans. But momentum returned quickly, with dealmaking posting back-to-back quarters above $1 trillion in the second half - the first time that's happened in four years.

Private Equity Activity Lags Broader Market

Buyout firms struggled to match the broader market's pace, with private equity dealmaking up just 25% to $889 billion. These firms continue to face challenges exiting existing investments, though some flagship transactions did materialize.

The largest was a $55 billion take-private of video game maker Electronic Arts led by Saudi Arabia's Public Investment Fund, with backing from Silver Lake and Jared Kushner's investment firm.

"The general narrative is that sponsors are not active, but there were some large take-private transactions," Anu Aiyengar, global head of advisory and M&A at JPMorgan Chase, said to FT.

"Despite the equity markets hitting record highs, mispriced opportunities continue to exist and the scale of these opportunities are made possible with financing coming from a myriad of sources."

A pickup in large initial public offerings - including medical supply group Medline and security services company Verisure - gave private equity firms more options to exit positions beyond traditional M&A sales.

Goldman Sachs expects the momentum to continue. "Over the next couple of years there's room for more activity, and we certainly feel the sponsor wave in particular is only just gaining momentum," Andre Kelleners, co-head of European investment banking at the firm, concluded.