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Global M&A activity returned to growth in 2025, with total announced value climbing approximately 10% to around US$1.9 trillion over the first three quarters of the year, according to a new report.
Boston Consulting Group’s latest Global M&A Report highlights a sharply uneven landscape and an upturn not being fueled by widespread market confidence, but by highly experienced acquirers taking advantage of selective opportunities.
Increases in activity are concentrated among organizations with the operational maturity and dealmaking track record to act decisively despite market volatility.
“The global M&A recovery is real but uneven, with markedly different trajectories across regions and sectors,” says Jens Kengelbach, BCG’s global head of M&A and a coauthor of the report. “We’re seeing an increase in deal preparation in the second half of 2025, and early signs that IPO pipelines are starting to move. Momentum is building.”
Regional performance diverged significantly with North America continuing as the powerhouse of global M&A, capturing about 62% of deal value, driven by large-cap activity and continued strength across corporate and financial buyers. Its total of roughly $1.3 trillion represented a 26% increase year-on-year.
Europe contracted 5% to around $375 billion with mixed fortunes country-by-country. Asia-Pacific saw the steepest pullback, down 19% to a ten-year low of approximately $284 billion. Global uncertainty, regulatory shifts, and diminished investor sentiment contributed to the slowdown.
By sector, industrials posted the most dramatic jump, up 77% thanks to renewed commitments in infrastructure and transport. Technology, media & telecommunications improved about 10%, while energy and health care each generated around 20% growth. Conversely, materials fell 16% and consumer-focused industries were down 17%.
Cross-border M&A now represents just 30% of global deal value, a sharp decline from approximately 50% in 2007, a sign that companies are prioritizing deals closer to home amid geopolitical strain.
For transactions above $100 million, experienced acquirers delivered roughly +1.0% two-year relative total shareholder return, while less practiced buyers saw –7.5%. In a volatile environment, disciplined execution and proven integration approaches are proving essential to capturing value in this phase of M&A’s recovery.
