Global mergers and acquisitions have reached $2.6 trillion so far this year—the strongest start since the 2021 post-pandemic boom—driven by a surge in artificial intelligence investments and corporate demand for growth, despite geopolitical and trade tensions.
While the number of deals is down 16% from last year, total deal value is up 28%, according to Dealogic, due in large part to large U.S. transactions exceeding $10 billion. These include Union Pacific’s proposed $85 billion buyout of Norfolk Southern and OpenAI’s $40 billion funding round led by SoftBank.
Although early-year concerns about trade tariffs and regulatory scrutiny initially slowed activity, renewed boardroom confidence and a more predictable policy environment have reignited dealmaking. Executives are increasingly motivated by growth opportunities, particularly in AI and related sectors.
Compared to August 2021’s $3.57 trillion, this year’s figure is about $1 trillion lower, but investment banks remain optimistic. JP Morgan and other firms expect the momentum to continue through the second half of the year as companies push forward with major strategic deals.
Tech and electronics, especially AI-related infrastructure like data centers, have now overtaken healthcare as the leading M&A sector. Samsung’s $1.7 billion acquisition of Germany’s FlaktGroup and Palo Alto Networks’ $25 billion deal for CyberArk underscore the shift.
Private equity activity has also rebounded, with Sycamore’s $10 billion take-private of Walgreens Boots Alliance and competing bids from KKR and Advent for Spectris in the UK.
The U.S. remains the dominant region for M&A, contributing over half of global volume, while Asia Pacific has doubled its deal activity compared to the same time last year, outpacing EMEA.
Source: Reuters
