A&O Shearman releases latest Global M&A Insights: Dealmaking momentum on the rise

Dealmakers showed renewed confidence in H2 2025, with aggregate values rising and a marked uptick in larger transactions. The U.S. led the acceleration following interest rate cuts by the Federal Reserve, while Europe saw higher values supported by ongoing regulatory reforms. Sovereign wealth funds continued to drive activity in the Middle East, and Asia Pacific remained resilient, buoyed by record inbound investment into Japan and regulatory-driven consolidation in China.

Key stats: Global

• H1 2025 global deal value reached USD1.93 trillion, up 20% on H2 2024 and the highest H1 figure in three years; H2 2025 rose further to USD2.03tn as larger transactions returned.

In the U.S., aggregate deal value increased sharply in the second half of 2025. The report highlights rising AI-driven M&A across sectors—targeting proprietary data, infrastructure, and talent—and outlines diligence approaches to manage emerging legal and regulatory risks across IP, data privacy, and cybersecurity.

It also assesses the practical impact of changes to the Hart-Scott-Rodino pre-merger reporting regime on transaction timelines and costs. The report further analyzes shifts in the Committee on Foreign Investment in the United States’ (CFIUS) review approach, with a heightened focus on ultimate beneficial ownership, cyber resilience, and exposure to sanctioned parties.

Key stats: U.S. and North America

• North American M&A value in H2 2025 totaled approximately USD1.1tn, with U.S. aggregate transaction value up 24% on H1 following a wave of megadeals.
• Average U.S. deal size between October and December 1 was USD400.1 million, more than triple Q1’s USD121m; Q3 alone recorded USD578 billion in deal value, the highest quarterly total since 2021.

In Europe, deal values rose in the post-summer period on the back of big-ticket strategic transactions, with technology, energy transition, and infrastructure particularly active. The report points to the European Union’s regulatory reform agenda—including its Digital and Defense Readiness Omnibus packages, and review of EU merger control guidance—as a catalyst for dealmaking in 2026. It also highlights country-level dynamics, including the Netherlands’ run of significant public M&A transactions, Germany’s decisive moves on defense, and the UK’s supportive policy signals, increased shareholder activism, and improving IPO conditions for sponsor exits.

Key stats: Europe

• European M&A value to early December reached USD746bn, 12% higher than the whole of 2024; H2 2025 value was up 23% versus H1.
• By market: UK USD181.3bn (slightly above 2024); Germany up 17.8% year-on-year; France up 4.8%; Italy up 4.3%; Belgium up 57%; Spain up 63%; the Netherlands up 171.6% on the back of major public M&A.

Middle Eastern sovereign wealth funds remained among the most active cross-border investors, executing transactions in AI, semiconductors, data centers, energy, and infrastructure. The report notes the dual-track approach of regional governments seeking closer ties with the U.S. while leveraging strategic neutrality to invest in Chinese technologies, and continued strength in local IPO markets with robust pipelines heading into 2026.

Key stats: Middle East (GCC)

• 2025 GCC deal value and volume to December 1 exceeded 2024’s full-year totals by 170% and 2.6% respectively.
• UAE and Saudi Arabia were the largest markets by value, at USD60.4bn and USD8bn respectively; notable energy and infrastructure deals included Aramco’s USD11bn Jafurah lease-and-leaseback transaction.

Across Asia Pacific, Japan recorded multi-year highs in take-privates and inbound acquisitions, supported by governance reforms, currency dynamics, and board focus on capital efficiency. In China, domestic M&A was underpinned by measures encouraging strategic consolidation, while sentiment toward selective inbound opportunities improved as markets stabilized.

The report also explores increased outbound investment from China into ASEAN, the Middle East, India, and select European markets, and outlines execution considerations for foreign entities considering joint ventures with Chinese counterparties. In Australia, the analysis highlights new execution risks linked to foreign investment screening.

Key stats: Asia Pacific

• Asia Pacific, including Japan, recorded USD946bn in 2025 deal value, surpassing 2024’s USD687.7bn, with deal count lower year-on-year (14,257 vs. 16,944).
• Greater China deal value reached USD399bn, up 46% on 2024; mainland China domestic M&A totaled USD335bn, up 47% versus 2024.
• Japan deal value rose to USD207.5bn—more than double 2024—amid strong inbound and take-private activity.
• Australia logged USD70.7bn, slightly below 2024, with H2 2025 up 28% on H1 and Q4 up 27% on Q3.
• India recorded USD60bn in deal value from October to December 1, broadly in line with H1 2025’s USD61 billion, reflecting sustained sponsor and corporate activity.

M&A Insights provides concise, partner-led analysis of market drivers, policy developments, and sector-specific opportunities across regions, including North America, Europe, the Middle East, and Asia Pacific. The report offers practical perspectives on transaction structuring, cross-border execution, and regulatory engagement to support decision-making in a rapidly changing environment.