Cross-border mergers and acquisitions hit a multi-year high in the year 2025, with significant participation from both Asia and the United States.
In a remarkable turn of events, Asia has emerged as the sunshine M&A market, with mergers and acquisitions (M&A) value in the region skyrocketing to a staggering $583.9 billion between 1st January and 30th June 2025. This surge can be attributed to a combination of factors that have created a conducive environment for major acquisitions.
One of the key drivers behind this growth is the rise in large-scale deals. The deal value in Asia more than doubled, largely due to significant transactions like Toyota's $33 billion move to take a supplier private and ADNOC’s $18.7 billion acquisition of Santos in Australia. This trend towards bigger deals reflects a strategic focus on consolidation and transformative acquisitions.
Asia's economic growth, particularly in countries like Japan and China, has also played a significant role. Japan, for instance, was a major contributor to this trend. Southeast Asia saw a notable increase in M&A activity, with Singapore acting as a regional hub for both outbound and inbound investments. The rise in cross-border deals and intra-regional confidence also boosted overall M&A activity in Asia.
Government-led transactions, especially in Indonesia, significantly contributed to the surge. These involved large-scale restructuring of state-owned enterprises, which maintained effective control through retained shares. This strategic reallocation of assets underpinned the growth of M&A in the region.
The broader trend of using M&A as a tool for business transformation and growth, driven by factors like AI and technological disruption, also influenced Asia's M&A landscape. Companies are increasingly focusing on strategic acquisitions to achieve growth and stay competitive.
Institutional and retail investors are regaining confidence in the M&A market, with the S&P 500 and Nasdaq indices reaching new record highs, indicating more deals can be expected as the market stabilises at a higher level. Over 50% of the largest 10 transactions in the first half of 2025 were directed at non-public firms.
The M&A market has seen a 62% increase in large transactions exceeding $10 billion over the previous year during the same period. The second quarter of 2025 has seen a comeback in the M&A market, with deals such as Alphabet's $30 billion acquisition of the cybersecurity startup Wiz Inc. and Charter Communications' $21.9 billion acquisition of Cox Communications.
Despite the positive outlook, the M&A activity may be impacted by the trade war initiated by U.S. President Donald Trump and geopolitical tensions. However, with a record rebound in U.S. equities and reduced market volatility, dealmakers have been given a shot of positivity, suggesting that the second half of 2025 may see even larger deals.
[1] Alphabet is acquiring the cybersecurity startup Wiz Inc. in a $30 billion deal. [2] Asia continues to lead in the volume of deals made. [3] Sequential changes in regulations and market stability create a conducive environment for major acquisitions towards the end of the year. [4] This is more than twice the $269.9 billion witnessed in 2025. [5] Confidence among institutions is being reinforced, with more mega deals confirmed. [6] The U.S. market has been demonstrating improvement in tourism markets, with larger deals accompanying it. [7] M&A activity in the first half of 2025 was 26% higher than the prior year, totaling $2.14 trillion.
- The surge in M&A activity in Asia is not limited to traditional sectors, as evidenced by Alphabet's $30 billion acquisition of the cybersecurity startup Wiz Inc.
- As regulation continues to evolve, the finance sector in Asia is witnessing an increasing number of M&A deals, given the growing significance of digital assets like Bitcoin in the region's business landscape.
