Global mergers and acquisitions (M&A) activity rose by about 10% in the first nine months of 2025 compared to the same period last year, according to a report by Boston Consulting Group (BCG). The value of deals reached roughly US $1.938 trillion, marking the highest level since 2022. North America led the increase, while Europe’s deal value dropped about 5% and Asia-Pacific saw a 19% fall. The tech, media and telecom sectors dominated with more than US $536 billion in M&A volume. The figures reflect strategic resilience despite geopolitical, tariff and supply-chain headwinds.

Despite the overall gain, the 2025 total remains more than 40% below the 2021 peak of US $3.3 trillion, underlining longer-term structural drag. European markets showed pockets of strength, with the Netherlands up 263% and Switzerland up 109%, even as the UK dropped 35% in value. Asia-Pacific’s downturn is notable, partly due to China-related regulatory and trade delays. The imbalance between regions highlights shifting deal dynamics and capital flows. Deal-makers are now emphasising cross-border deals that circumvent regulatory bottlenecks.

The dominance of technology, media and telecoms shows that strategic growth sectors continue to attract capital, while traditional industries such as industrials (US $280 billion) and real estate/finance (US $357 billion) also saw active transactions. M&A advisors noted that many large corporations used the current market environment and low borrowing rates to accelerate transformational deals. However, caution remains as economic uncertainty and regulatory scrutiny intensify. A number of delayed or renegotiated deals reflect this caution.

Analysts say the rebound in M&A amid uncertainty signals confidence in long-term structural shifts rather than short-term speculation. Companies are pursuing consolidation, scale and vertical integration to manage disruption from tech, supply chains and climate transition. Investors will watch whether the momentum lasts as central-bank policy tightens and inflation remains sticky. Also, regulatory hurdles — especially in the U.S., EU and China — still pose risks. Firms with strong strategic rationale and synergies are more likely to execute successfully.

Looking ahead, the key question is whether this M&A recovery will broaden beyond tech and mature industries into sectors like energy transition, agriculture and emerging markets. If deal-flow remains concentrated in a few hot segments, the risk is greater that valuations are stretched. Otherwise, a broader recovery could support global investment and economic growth. For business leaders, the challenge is identifying the right targets, navigating regulatory frontiers and capturing value in a complex environment.

Source: Reuters.