Large-cap businesses dominated the landscape, with 48 megadeals accounting for 42% of total activity. The technology sector maintained its lead for the tenth consecutive quarter, fueled by OpenAI’s massive $122 billion funding round. Simultaneously, the utilities and energy sector reached $328 billion as firms scrambled to secure AI-ready infrastructure and energy supplies. Lucinda Guthrie, head of Mergermarket, noted that these massive bets are often a response to the race for AI dominance, masking fragilities in the broader market.

North America remained the primary engine of this growth, contributing $1.78 trillion to the global total—a 66% increase from the previous year. EMEA also saw a resurgence, posting its strongest performance since 2007 with $847.5 billion in volume, highlighted by McCormick’s $42.7 billion acquisition of Unilever’s food business. In contrast, the APAC region faced a 24% decline, hampered by a sharp drop in large-cap deals and persistent weakness in China. While strategic buyers commanded 76% of global volume, private equity firms grew increasingly cautious, with financial sponsor investment activity dipping by 6% as rising costs complicated capital allocation.