AI, rail and media tie-ups lift global dealmaking above $4 trillion

Global mergers and acquisitions exceeded $4 trillion in 2025, reaching $4.5 trillion, marking the highest level since the 2021 boom and the second-largest annual total in more than 40 years, according to data cited by the Financial Times from the London Stock Exchange Group.

The surge was driven by a record 68 megadeals worth at least $10 billion each, reshaping sectors from media to industrials.

The rebound was supported by strong equity markets, ample financing, and a more permissive US regulatory environment, particularly under Donald Trump’s second administration. Investment banking fees rose to an estimated $135 billion, up 9 per cent year on year and the second-highest level on record. The United States accounted for more than half of global deal value, with transactions involving US targets totalling $2.3 trillion, the highest share since 1998.

Dealmakers pointed to elevated risk appetite and regulatory flexibility. Tony Kim of Centerview Partners told the Financial Times that conditions now allow for large, industry-transforming transactions, while Lazard’s Mark McMaster described the market as an “all systems are go” environment for completing deals.

Among the largest transactions of the year were the battle involving Netflix and Paramount for Warner Bros Discovery and the $250 billion railroad merger between Union Pacific and Norfolk Southern. The scale mirrors 2021, when landmark deals included the WarnerMedia–Discovery merger and Canadian Pacific Railway’s acquisition of Kansas City Southern.

Momentum briefly slowed after the announcement of sweeping “liberation day” tariffs in April, but dealmaking rebounded quickly. The year ended with two consecutive quarters each exceeding $1 trillion in M&A, a first in four years, reflecting significant pent-up demand.

The surge in megadeals contrasted with a 7 per cent decline in the overall number of transactions, which fell to the lowest level since 2016. Private equity lagged the broader recovery, with deal value rising just over 25 per cent to $889 billion, as sponsors continued to face difficulties exiting assets. Nonetheless, standout transactions emerged, including a $55 billion take-private of Electronic Arts led by Saudi Arabia’s Public Investment Fund, alongside Silver Lake and Jared Kushner.

Bankers told the Financial Times that increased activity in large initial public offerings — such as Medline and Verisure — has improved exit options for private equity. Executives at JPMorgan and Goldman Sachs said these conditions point to further momentum in dealmaking, particularly among financial sponsors, in the years ahead.

By Tamilla Hasanova