This year, the global mergers and acquisitions (M&A) market surged to $4.5 trillion (approximately 6,502 trillion won).
The Financial Times (FT) reported on December 26 (local time), citing data from the London Stock Exchange Group (LSEG), that the global M&A volume increased by 50% compared to the previous year. This marks the largest volume since 2021, when major deals were concentrated during the COVID-19 pandemic, reaching $5.8 trillion.
This year, there were a total of 68 mega-deals valued at over $10 billion (about 14.45 trillion won) each. The largest transaction was Union Pacific’s acquisition of the Eastern U.S. railroad company Norfolk Southern for $85 billion (approximately 123 trillion won). Once the merger is completed, it will create a mega-transportation company with a market capitalization of $250 billion (about 361 trillion won).
Additionally, if Paramount successfully executes a hostile takeover of Warner Bros. Discovery, it is expected to result in another major deal exceeding $100 billion.
The aggressive pursuit of large-scale M&A by companies is attributed to the ongoing trend of deregulation since the launch of the Donald Trump administration, as well as abundant financing conditions.
Andrew Nussbaum, co-chairman of the major law firm Wachtell, Lipton, said, "If it is strategically important, companies are showing a willingness to take on regulatory risks," adding, "There is a growing perception that consultations with regulatory authorities are also becoming more constructive."
Thanks to the surge in M&A transactions, global investment banks earned a total of $135 billion (about 195 trillion won) in fees, with more than half coming from deals involving U.S. companies. The M&A volume of U.S. companies reached $2.3 trillion, recording the highest share since 1998.
However, despite the increase in mega-deals, the total number of completed M&A transactions fell by 7%, reaching the lowest level since 2016.
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