Global M&A activity has surged to $2.6tn year-to-date, underpinned by a renewed corporate appetite for growth and a significant boost from artificial intelligence (AI)-related deals, and marking the highest level for the opening seven months since the pandemic-driven peak of 2021, according to a report by Reuters.
This momentum is offsetting uncertainties tied to US tariffs and geopolitical tensions.
Dealogic data reveals that while deal volumes are down 16% compared to the same period last year, the total value of transactions is up 28%, propelled by several US megadeals exceeding $10bn.
Key transactions include Union Pacific Corp’s proposed $85bn acquisition of Norfolk Southern and SoftBank-led OpenAI’s $40bn funding round.
After a hesitant start amid trade tariff concerns and geopolitical volatility under the Trump administration, confidence in boardrooms has rebounded, aided by a clearer US antitrust agenda and a more stable regulatory environment.
Despite the year-to-date figure trailing the $3.57tn recorded in the first seven months of 2021 by nearly $1tn, dealmakers remain optimistic. JP Morgan Chase has flagged expectations for increased activity and larger transactions in the second half as companies adjust to ongoing volatility.
Nigel Wellings, Partner at Clifford Chance, echoed this sentiment, noting a market moving beyond tariff-related disruption.
Sector dynamics have shifted since the post-pandemic years when healthcare dominated dealmaking. The computer and electronics sector has led takeover activity across the US and UK over the past two years, driven in part by AI-related investments.
Notable examples include Samsung’s $1.7bn acquisition of data centre cooling specialist FlaktGroup, and Palo Alto Networks’ $25bn purchase of Israeli cybersecurity firm CyberArk – the largest deal so far this year across EMEA, reflecting rising demand for AI-driven cybersecurity solutions.
Private equity firms, having previously stayed on the sidelines, are now back in the fray. Highlights include Sycamore Partners’ $10bn take-private of Walgreens Boots Alliance and competitive bids from KKR and Advent for UK scientific instrument maker Spectris, valued at £4.8bn.
Geographically, the US continues to dominate global M&A, accounting for more than half of all activity. Meanwhile, Asia-Pacific dealmaking has doubled year-on-year, outstripping the pace in the EMEA region.
