Global mergers and acquisitions in 2025 surged to nearly match the peak of 2021, with total M&A value hitting about $4.5 trillion, a 50% increase from 2024. The year saw a record number of megadeals, including the $72 billion Netflix-Warner Bros. deal and a $88.26 billion rail merger between Union Pacific and Norfolk Southern.

One standout feature of 2025 was the high number of megadeals, with 68 transactions worth at least $10 billion, double the previous year. Paramount and Netflix engaged in a bidding war over Warner Bros. Discovery, with Paramount offering a revised $108.4 billion bid. Despite this, some shareholders deemed the new bid insufficient.

The year’s second largest deal was a $88.26 billion rail merger between Union Pacific and Norfolk Southern. Electronic Arts (EA) shareholders also approved a $55 billion sale to a consortium led by Saudi Arabia’s Public Investment Fund. Kimberly-Clark’s $40 billion acquisition of Kenvue and the $40 billion Aligned Data Centers acquisition rounded out the list of top deals.

Cheaper financing in 2025 encouraged firms to pursue big deals, with U.S. interest rates dropping 75 basis points. This unlocked pent-up demand post-pandemic and led to increased confidence in borrowing. The loosening of credit markets and greater clarity around interest rates spurred companies to act on growth opportunities.

The Trump administration’s regulatory environment also played a role in motivating companies to pursue strategic tie-ups. Despite the overall increase in deal activity, middle-market transactions saw a 7% drop, the lowest since 2016. This was attributed to macroeconomic uncertainty around inflation, interest rates, and tariffs, which led many businesses to delay smaller investments in favor of megadeals.

Read more at Yahoo Finance: Here were top 5 mega-deals of 2025