Record wave of megadeals pushes M&A past USD 1 tn

Global M&A activity rose past USD 1 tn in 3Q 2025, fueled by a record wave of megadeals, the Financial Times reports. A total of 14 acquisitions worth more than USD 10 bn were announced over the past few months, led by the USD 55 buyout of gaming giant Electronic Arts by a consortium of the PIF, US private equity firm Silver Lake, and Affinity Partners — the largest take-private this year. Other headline tie-ups included Union Pacific’s USD 85 bn takeover of Norfolk Southern, Anglo American’s USD 50 bn merger with Teck, and Palo Network’s USD 25 bn acquisition of CyberArk.

It’s been a busy year so far: There were 47 transactions worth more than USD 10 bn in the first nine months of the year — the most since London Stock Exchange Group (LSEG) began tracking. Total global M&A activity climbed to nearly USD 3.1 tn YTD, a 35% increase y-o-y, putting 2025 on pace to be the strongest year for M&A since 2021.

Corporate restructuring is also fueling the flurry of activity: Kraft Heinz will split into twopublicly traded companies in 2026 through a spin-off following challenges “to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas” due to a complicated internal structure. At the same time, Keurig Dr Pepper is acquiring JDE Peet’s in an allcash USD 18.3 bn transaction and plans to spin off its USD 16 bn coffee arm into Global Coffee Company. Meanwhile, the company will focus on North America’s USD 300 bn refreshment market, anchored by Dr Pepper and Canada Dry.

Advisory firms say sentiment has shifted: M&A activity was subdued earlier in the year as trade tariffs, high borrowing costs, and regulatory uncertainty made boards and private equity firms cautious, with many large transactions delayed or shelved pending clearer guidance on antitrust reviews and macro conditions, according to Reuters. That cautiousness is easing as financing costs moderate, regulators signal a lighter touch, and executives refocus on growth initiatives, including megadeals and AI-driven acquisitions, EY Global Financial Services Strategy and Transactions Leader Andre Veissid told Reuters. Clients are “dusting off” old plans as they adjust to today’s market conditions and lighter antitrust scrutiny, a Skadden partner told the Financial Times.

Banks are cashing in: Fees have already reached USD 95.4 bn this year, the second-highest total on record. Bank of America could earn USD 130 mn if the Norfolk Southern transaction clears regulators, topping JP Morgan’s USD 123 mn payday from AbbVie’s 2019 acquisition of Allergan.

The upshot: “M&A is infectious,” said Latham & Watkin’s Charles Ruck, who advised on three of this summer’s largest acquisitions. “The market is rewarding companies for pursuing mergers again.” Co-chair of Wachtell Lipton’s M&A practice Jacob Kling put it more bluntly, “the M&A market is on fire at the moment — and I don’t think that’s changing anytime soon.”

ALSO FROM PLANET FINANCE-

Kuwait is returning to international debt markets for the first time in eight years with a bond sale that raised USD 11.25 bn, Bloomberg reports, citing a person it says is familiar with the matter. The three-part offering, with maturities of three, five, and 10 years, drew orders of more than USD 27.7 bn. The bonds are expected to be rated A+/AA by S&P and Fitch and were priced as much as 35 basis points tighter than initial guidance, according to the source.

Kuwait currently has only one outstanding international bond, a USD 4.5 bn note due in 2027, which trades at a yield of around 4.3%.

The bond sale follows the government’s approval of a long-delayed debt law earlier this year, ending years of political gridlock that blocked new borrowing. To cover budget deficits, the country has been tapping its General Reserve Fund and even selling assets to its Future Generations Fund, both overseen by the Kuwait Investment Authority.

MARKETS THIS MORNING-

It’s a mixed start for Asia-Pacific markets this morning, even after US markets closed in the green overnight. Japan’s Nikkei and Topix are both down more than 1% in early trading, while South Korea’s Kospi is up. Markets in China and Hong Kong are closed today for China’s National Day. Futures suggest Wall Street will open in the red later today as the US government inches closer towards a shutdown.

THE CLOSING BELL: TADAWUL-

The TASI rose 0.6% yesterday on turnover of SAR 7.8 bn. The index is down 4.4% YTD.

In the green: Petro Rabigh (+6.7%), Saudi Kayan (+6.0%) and UCIC (+5.3%).

In the red: Alsaif Gallery (-3.5%), Mepco (-2.5%) and SRMG (-2.4%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.2% yesterday on turnover of SAR 44.2 mn. The index is down 19.1% YTD.

In the green: Balady (+20.0%), Fadeco (+8.5%) and Itmam (+8.2%).

In the red: Bena (-10.0%), Knowledge Tower (-6.3%) and Alrashid Industrial (-6.3%).

CORPORATE ACTIONS-

Rabigh Refining and Petrochemical’s (Petro Rabigh) board of directors agreed to boost the company’s capital by 31.5% to SAR 22 bn via a private placement to founding shareholders Saudi Aramco and Sumitomo Chemical, it said in a disclosure to Tadawul. The company had announced the plan last month.