Global mergers and acquisitions have hit $2.6 trillion so far this year, marking the highest value for the first seven months since the 2021 peak. This rise has been driven by corporate growth ambitions and a sharp increase in AI-related activity, despite uncertainties caused by United States trade tariffs.
While the number of deals is down 16 per cent compared to the same period last year, their overall value has climbed by 28 per cent, as per data from a global financial platform. This boost comes from major United States transactions exceeding $10 billion, including Union Pacific Corporation’s proposed $85 billion acquisition of Norfolk Southern and OpenAI’s $40 billion funding round led by a Japanese investment group.
This rise comes as a relief for bankers who had earlier hoped for increased deal activity under the current United States administration. However, initial concerns over tariffs and geopolitical tensions had delayed decisions. The situation has since improved, with renewed confidence in boardrooms and a shift in the administration’s approach to anti-trust regulations.
“What you are seeing in terms of deal rationale for transactions right now is that it is heavily growth-motivated, and it is increasing,” said Andre Veissid, Global Financial Services Strategy and Transactions Leader at a multinational firm.
AI and changes in regulation are key factors behind this momentum, as companies aim to stay competitive. Although this year’s deal value is still 27 per cent lower than the $3.57 trillion peak in August 2021, industry leaders believe there is more to come in the second half of the year.
“People have got used to the prevailing uncertainty, or maybe the unpredictability post-United States election is just more predictable now,” said Simon Nicholls, co-head of a leading law firm’s M&A group. Another legal expert, Nigel Wellings, added that the market is stabilising, though not overly inflated.
The focus has shifted from healthcare to technology, especially in the United States and United Kingdom. AI is driving demand for data centres and cybersecurity, seen in deals like Samsung’s $1.7 billion acquisition of FlaktGroup and Palo Alto Networks’ $25 billion buyout of CyberArk.
Private equity is also back, with Sycamore Partners’ $10 billion acquisition of Walgreens Boots Alliance and competing bids for Spectris in the United Kingdom. The United States leads the global M&A space, followed by a strong rise in Asia Pacific, surpassing activity in Europe, Middle East, and Africa.
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