Global M&A Activity Surges in Q4 2025 as Mega Deals Reclaim Dominance

Global merger and acquisition activity accelerated sharply in Q4 2025, marked by a surge in mega-deals that had been absent for several years. At least 32 transactions exceeding $10 billion were announced, representing a 72% increase from the same period in 2024. Notable deals include a $48 billion all-cash acquisition of a European semiconductor firm by a U.S.-based tech conglomerate and a $33 billion cross-border merger between a Japanese industrial group and a German energy infrastructure provider. The rebound in mega-deals follows a prolonged period of subdued M&A due to high interest rates and geopolitical uncertainty. With inflation moderating and central bank rate cuts expected in early 2026, companies are now reassessing capital deployment strategies. A growing number of firms are leveraging strong balance sheets and access to favorable debt terms to pursue strategic consolidation, particularly in sectors like technology, renewable energy, and advanced manufacturing. Transaction volume in the $10 billion–$50 billion range rose by 68%, while deals above $50 billion accounted for nearly 40% of total deal value. The average deal size in Q4 reached $21.7 billion, the highest quarterly average since 2021. These figures indicate that investors and corporate executives are increasingly prioritizing scale and market positioning over cautious capital allocation. The renewed M&A momentum is affecting financial markets broadly. Equity indices in North America and Asia have seen upward pressure, with the S&P 500 gaining 5.3% in the quarter, partly driven by merger-related stock rallies. Investment banks reported a 45% increase in advisory fees for large transactions, and private equity firms have ramped up fundraising, with over $150 billion committed to new funds focused on strategic acquisitions.