Global Mergers & Acquisitions Surge in Value Despite Fewer Deals in Q3 2025

In the third quarter of 2025, global mergers and acquisitions (M&A) activity exhibited a notable divergence: while the total deal value surged to $1.26 trillion—a 40% increase from the same period in 2024—the number of deals declined by 16%, totaling 8,912, the lowest Q3 volume in two decades. This trend indicates a shift toward fewer, but larger, high-value transactions. The average deal size rose significantly to $141.4 million, up from $85.5 million the previous year. This pattern reflects a strategic focus on consolidation and scale among companies, particularly in sectors like artificial intelligence and cryptocurrency, which have seen substantial activity.

The technology sector, particularly artificial intelligence (AI) and cryptocurrency, experienced substantial M&A activity. Companies are aggressively pursuing acquisitions to bolster their AI capabilities, aiming to enhance product offerings and maintain competitive advantages. The sector witnessed consolidation as firms sought to expand their portfolios and capitalize on the growing adoption of digital assets.

The United States led the M&A activity, accounting for 45% of global deal volume, followed by Europe at 30% and Asia-Pacific at 20%.

The current trend of fewer but larger deals is reminiscent of patterns observed in previous economic cycles, where market uncertainties led companies to focus on strategic, high-value acquisitions. However, the magnitude of the average deal size in Q3 2025 sets a new precedent.

The shift towards larger deals may lead to increased market consolidation, potentially reducing competition in certain sectors. This could have implications for consumer choice and innovation. Additionally, the focus on AI and cryptocurrency highlights the growing importance of these technologies in shaping future economic landscapes.

The third quarter of 2025 has been a landmark period for global M&A activity, characterized by a significant increase in deal value despite a decline in the number of transactions. This trend underscores a strategic emphasis on consolidation and scale, particularly within the technology sector. As companies navigate this evolving landscape, the implications for market dynamics, competition, and technological advancement will be critical areas for ongoing analysis.