Financial and capital market updates

Market deals

2025 outlook

Q3 2025 was one of the strongest quarters in recent years, with global M&A deal value reaching USD 1 trillion, marking a significant increase of 31% from Q2 despite a comparable number of transactions.

This surge was driven by mega deals. Companies shifted toward fewer but higher-value transactions, reflecting a strategic pivot from aggressive expansion to resilience and long-term positioning.

Private equity sponsors played a major role, accounting for a record share of global deal value, focusing on large-scale take-private transactions. Equity Capital Markets (ECM) saw a notable rebound late in the quarter.

IPO activity accelerated as investor sentiment improved following the Fed’s September rate cut and easing inflation expectations. Secondary offerings and private placements also gained traction as firms increasingly favoured equity financing over debt to strengthen balance sheets and fund strategic initiatives.

Debt Capital Markets (DCM) remained subdued, as companies opted for equity and private credit amid rate uncertainty and tighter credit conditions.

United States

The U.S. led global deal activity in Q3, accounting for the majority of mega deals and transaction value. US witnessed a 65% surge in M&A activity in Q3 vs Q2 2025.

Landmark transactions included the $85B Union Pacific Norfolk Southern merger, creating America’s first transcontinental freight railroad, and the $55B take-private of Electronic Arts, the largest leveraged buyout in history.

Chevron’s $53B acquisition of Hess further underscored consolidation in energy. ECM activity strengthened, with rising as market confidence due to rate cut expectations. DCM issuance also witnessed a slight increase in transaction value.

United Kingdom & Europe

M&A activity in Europe strengthened in Q3, driven by strategic consolidation and attractive valuations. Notable mega deals included Anglo American’s $53B merger with Teck Resources, creating a -copper giant, and Air Lease Corp’s $7.4B take private deal backed by global investors.

The UK also saw significant cross border transactions in financial services and energy transition assets. ECM activity improved with several high-profile listings, while DCM issuance declined as firms favoured equity and private credit over traditional debt financing.

Rest of the world

Emerging and non-traditional markets played a resilient and increasingly important role. The rest of the world consistently contributed between 20% and 40% of global deal values, particularly in mergers and acquisitions (M&A), private placements, and equity capital markets (ECMs).

Although overall deal volumes remained modest, the region reported no growth in M&A, reduction in DCM and slight increase in ECM activity, indicating cautious investor sentiment.