Q3 2025 M&A Deal Value Surges to $1.26 Trillion
The third quarter of 2025 witnessed a significant surge in global mergers and acquisitions (M&A) deal value, reaching $1.26 trillion, the second-highest figure ever recorded for a third quarter. Despite a 16% drop in the number of deals, the quarter saw a record number of mega-deals and a revival in the IPO market.
Union Pacific's $88.18 billion acquisition of Norfolk Southern was the largest deal of the quarter, driving the average deal size up to $141.4 million, a 65% increase from the same period last year. Notably, there were 49 deals worth over $10 billion in the first nine months of 2025, a 75% increase from the same period in 2024. This surge in large deals contributed to the 40% year-over-year increase in total deal value.
Several high-profile initial public offerings (IPOs) boosted the IPO market. StubHub's $800 million IPO and Klarna's $1.37 billion debut were among the notable listings. Meanwhile, cross-border dealmaking rose by 44% to $931 billion, the largest jump since 2021. Hong Kong IPOs alone raised $23 billion this year, more than three times the value for the same period in 2024.
Crypto companies and AI-related firms fueled this boom in IPOs and M&A deals. However, the U.S. government shutdown posed a challenge, with federal regulators facing furloughs that could cause a logjam for IPOs.
Despite a decrease in the number of deals, the third quarter of 2025 saw a remarkable increase in M&A deal value, driven by a record number of mega-deals and a revival in the IPO market. The quarter also marked a significant rise in cross-border dealmaking. While the U.S. government shutdown presents a potential hurdle, the strong performance of the IPO market and the surge in deal value indicate a robust global M&A landscape.
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