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The first half of 2025 showed mixed trends across global M&A markets, with aggregate deal values rising even as volumes moderated. The latest Deal Drivers reports, published by Datasite and Mergermarket, highlight the economic and policy developments shaping deal activity, as well as the sectors leading growth in each region.
Economic conditions in the Americas were uneven in the first half of the year. The US economy contracted slightly in the first quarter but regained momentum in the second, supported by easing credit conditions and stronger investor demand.
Deal volume across the region fell compared to the same period last year, while aggregate deal value increased. Transaction volume dropped 17.7% year-on-year to 6,217 deals, but aggregate deal value increased 17.1% to nearly US$1.2tn.
Telecoms, media, & technology (TMT) led activity in both value and volume, dominating with US$403.7bn in value, followed by energy, mining, & utilities (EMU), and pharma, medical, & biotech (PMB) sectors.
M&A activity in EMEA slowed during the first half of 2025, with boards and investors monitoring trade policy developments and economic conditions. The European Central Bank reduced the deposit rate to 2.5% in March and June, creating a more accommodative financing backdrop.
Despite a 19.1% year-on-year drop in deal volumes to a three-year low, aggregate deal value remained stable.
Activity from US and UK bidders contributed to regional deal flow. Bidders from the USA continued to lead on aggregate value with €100.2bn, while UK firms were the most active in terms of deal count with 1,346 transactions.
TMT and financial services both crossed the €90bn mark, with strong contributions from industrials & chemicals (I&C).
In APAC, aggregate deal value soared to 89.5% year-on-year to US$612bn, driven by corporate blockbuster deals. China recorded the highest total deal value, aided by state-directed capital infusions into its financial system. Southeast Asia and India continued to capture attention with their rapid growth in financial services and TMT.
The star of the APAC M&A scene right now is Japan, whose corporate governance reforms continue to reap dividends, as Japan led in deal volume with 1,613 deals. The vast pool of under-managed business units still under the wings of sprawling conglomerates makes Japan an attractive destination for PE funds, which are wasting no time in seizing upon the opportunity of a generation.
The I&C sector led the region by value, followed by financial services and TMT.
Global M&A in HY 2025 showcased contrasting trends: declining volumes but rising deal values, fueled by mega-transactions in TMT, industrials, financial services, and energy. The Americas leaned into strategic consolidation, EMEA grappled with policy-driven caution, and APAC thrived on transformative, high-value blockbuster deals.
These dynamics set the stage for a second half that could either build on the momentum of high-value transactions or shift if economic or policy headwinds intensify.
For a detailed breakdown of trends, sector-level analysis, and transaction data, download the full Deal Drivers HY 2025 reports for the Americas, EMEA, and APAC.
Datasite is a global SaaS provider of AI-powered workflow collaboration and automation solutions for M&A, investment and strategic projects. Datasite’s innovative products drive execution, while generating unique data insights to empower knowledge workers around the world to succeed across the entire project lifecycle. For more information, visit www.datasite.com
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