Transaction Value Soars 50% Year-on-Year, with the U.S. at the Center
Clear Polarization: Scale Over Quantity Defines the Market
68 Mega Deals Exceeding $10 Billion Each
Hostile Takeover Battles Heat Up, Including Paramount
The global mergers and acquisitions (M&A) market is heating up once again. Going beyond a mere uptick, a series of massive mega deals are redrawing the global industrial landscape.
According to major foreign media outlets on December 26 (local time), the size of the global M&A market this year has surpassed 4.5 trillion dollars (approximately 6,502 trillion won). This figure represents a staggering 50% surge compared to last year, marking the highest level since 2021, when liquidity was at an all-time high.
This year, the market is characterized not by the number of deals, but by their scale. The total number of transactions actually fell by 7%, hitting the lowest level since 2016, but there were as many as 68 mega deals worth over 10 billion dollars each. The polarization is clear, with smaller deals disappearing and only the largest players making moves.
The most symbolic event is the acquisition of Norfolk Southern by the U.S. rail giant Union Pacific for 85 billion dollars. Once this merger is completed, a transportation behemoth with a market capitalization of 250 billion dollars will be born. Adding to the tension is Paramount's hostile takeover bid for media powerhouse Warner Bros. Discovery, which is valued at over 100 billion dollars.
Experts cite the resolution of political uncertainty and confidence in regulatory easing as the driving forces behind this explosive growth. Analysts explain that expectations for looser antitrust regulations following the launch of the Donald Trump administration have awakened companies' predatory instincts.
Andrew Nussbaum, co-chairman of the major law firm Wachtell Lipton, reported that companies are now boldly making strategic bets without fearing regulatory risks. He noted that signals from regulators-who are engaging in constructive dialogue rather than imposing strict standards as in the past-are resonating with the market.
Meanwhile, the epicenter of this year’s M&A boom is, once again, the United States. More than half of the total deal value, or 2.3 trillion dollars, originated from transactions between U.S. companies. This is the highest share since 1998. Thanks to this financial war, global investment banks have collected an astronomical 135 billion dollars (approximately 195 trillion won) in brokerage fees.
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