Global mergers and acquisitions (M&A) will exceed $3 trillion this year, with experts expecting an increase in large deals in 2025 under Donald Trump’s presidency, writes the Financial Times. According to the London Stock Exchange (LSE), the M&A market in 2024 increased by 11%. A year earlier, its volume fell below the $3 trillion mark for the first time in more than a decade.
The value of so-called mega deals (worth more than $5 billion) has increased by 19% since the beginning of this year. That’s what drove total M&A volume up, while the number of deals fell 20% to a nine-year low.
High-profile deals this year included U.S. Mars’ $35.9 billion purchase of Kellanova, which makes Pringles chips, among other things, and financial firm Capital One Financial’s $35.3 billion acquisition of rival Discover Financial Services. A number of experts hope Trump’s return to the White House will mean less regulatory scrutiny of big mergers after the skeptical stance taken by regulators during Joe Biden’s presidency.
“The regulatory environment is expected to be less burdensome,” believes Anu Iyengar, global head of advisory and M&A at JPMorgan Chase.
“There are many signs pointing to 2025 being a successful year,” said Centerview Partners co-president of investment banking Tony Kim.
Although M&A activity slowed in the past three months compared to the third quarter, a flurry of deals followed the U.S. election in November.
“Rumors of a collapse in the M&A market have been exaggerated to some extent,” says Stefan Feldgois, co-head of global M&A at Goldman Sachs. – Since the election, activity has picked up markedly.
The U.S. accounted for 46% of global M&A activity this year. At the same time, the amount of deals grew by 8%.
M&A volume in Asia-Pacific was down 2%, although Japan jumped 45% to a 19-year high. Europe recorded a 20% rise. Investment banking fees rose 12% year-on-year to $111 billion, above the average for the past decade, the FT noted.
Goldman Sachs Group maintained its position as the global leader in M&A advisory. Morgan Stanley displaced JPMorgan Chase & Co. to take second place.
