Global dealmaking reached a record $2.8tn in the first half of the year, driven by a surge in mega takeovers as companies pursued strategic acquisitions despite geopolitical uncertainty and market volatility, according to a report by the FT.
Mergers and acquisitions agreed globally rose 49 per cent year-on-year in the first six months, according to LSEG data. The period included a record 47 transactions valued at more than $10bn, up 62% on the same period last year.
Private equity-backed M&A reportedly rose 54 per cent to $601bn. The rebound provides a positive signal for sponsors seeking to exit assets after a prolonged slowdown in distributions and deal activity.
Broad M&A increases were led by large transactions in technology, energy and power, and industrials, with dealmakers pointing to artificial intelligence as a major driver of activity. The rise in overall deal value came despite a 9 per cent decline in the number of transactions, with smaller deals affected by energy price volatility and uncertainty over AI disruption. The US and Europe led the increase in activity, with deal values rising 77 per cent and 105 per cent respectively, while Asia-Pacific dealmaking fell 2.4 per cent.
Notable deals included Dominion Energy’s merger with NextEra Energy to create a $420bn US utilities group, SpaceX’s $60bn all-stock acquisition of coding platform Cursor, Fox Corporation’s $22bn deal to buy Roku, and a series of biotech acquisitions by large pharmaceutical companies.
Investment banks have benefited from the rebound, with Goldman Sachs advising on more than $1tn of transactions during the period.
