Global M&A volume hits a new high in the same period after the pandemic! It has reached $2.6 trillion from the beginning of the year, and the demand for AI and corporate growth is fueling a surge in transactions.

The global M&A transaction volume has climbed to $2.6 trillion, reaching the highest level for the same period (first 7 months) since the peak during the pandemic in 2021. The urgent pursuit of growth by companies and the explosive activity in the field of artificial intelligence have gradually offset the uncertainty caused by US tariff policies. According to Dealogic data, as of August 1st, the number of transactions this year has decreased by 16% compared to the same period last year, but the total value of transactions has increased by 28%, driven mainly by several giant transactions in the US worth over $100 billion each. These include The Pacific's proposed acquisition of smaller competitor Norfolk Southern for $85 billion, and SoftBank Group's lead in raising $40 billion in funding for OpenAI. For investment banks, this wave of M&A frenzy is undoubtedly a shot in the arm. Earlier this year, they had predicted that the policies of the Trump administration would trigger a wave of consolidation, but tariff policies and political uncertainty surrounding GEO Group Inc had caused companies to shelve their transaction plans. It wasn't until the company boards regained confidence and the US government's anti-trust agenda sent positive signals that the market sentiment was reversed. Andr Weiseth, Global Financial Services Strategy and Transactions Director at EY, stated, "The core logic of the current transactions is highly focused on growth, and this trend is strengthening. Whether it's competition in the field of artificial intelligence or changes in the regulatory environment, clients are unwilling to fall behind in this race, which is the key driver pushing transaction activities." Compared to August 2021 (when investors regained confidence from pandemic lockdowns, driving global M&A volume to $3.57 trillion), this year's total transaction value is still nearly $1 trillion lower, a decrease of about 27%. However, Morgan Stanley's dealmakers believe that with corporate executives gradually adapting to market fluctuations, more large transactions will be completed in the second half of the year. Simon Nichols, Co-Head of Corporate and M&A at Slaughter and May, pointed out, "The market has gradually adapted to the current uncertainty, and perhaps the unpredictability post-US election has become more predictable." Nigel Wilkins, Partner at Clifford Chance, also stated that the market is gradually moving away from the impact of tariffs: "Company boards see the merger opportunities brought about by the stable economic environment and positive regulatory signals, but the current market has not seen a bubble." From healthcare to technology: Shift in industry focus Dealogic data shows that in the years following the pandemic, the healthcare industry was the main DRIVE for M&A activity; while in the past two years, the number of tender offers for mergers and acquisitions in the computer and electronics industry in the US and UK has significantly increased. Artificial intelligence is expected to continue driving more transactions. M&A activity related to data centers has significantly heated up, such as Samsung's $1.7 billion acquisition of German data center cooling technology expert FlaktGroup. In addition, Palo Alto Networks (PANW.US) acquired Israeli cybersecurity peer CyberArk for $25 billion, becoming the largest M&A deal in the Europe, Middle East and Africa region so far this year - the increasing AI-driven security threats are prompting companies to strengthen their defense systems. Private equity firms that had once been hesitant are also back in action. For example, Sycamore Partners privatized Walgreens Boots Alliance for $10 billion; KKR and Advent each made a $4.8 billion acquisition offer for British scientific instrument manufacturer Spectris, entering into a bidding war. The US remains the largest M&A market in the world, accounting for over half of the global transaction volume. The Asia-Pacific region has doubled its M&A volume compared to the same period last year, with growth rates exceeding those of Europe, the Middle East, and Africa.