Merger and acquisition activity in February sees a decrease with no deals over $10 billion announced

Merger and acquisition (M&A) activity took a backseat in February, with no transactions exceeding $10 billion announced globally during the month. This marks a significant slowdown from January, where four deals valued over $10 billion were unveiled. It is also the first month since July 2024 without such sizable transactions.

Data from S&P Global Market Intelligence reveals that the number of large global deals in the first two months of 2025 is four less than the same period last year. This decline in M&A activity is significant, especially considering expectations for an increase in deals this year due to factors like relaxed regulations and a recovery from low deal volumes in the preceding years.

In North America, the total M&A volume dropped to $130 billion in February, the lowest level since February 2023, following January’s $180 billion in announced deals. Analysts predict a stronger M&A landscape for the rest of 2025 despite the sluggish start. The slowdown in transactions last month could be attributed to factors like volatility, uncertainties related to tariffs, and US fiscal policies.

Bank of America’s credit analyst, Yuri Seliger, noted the impact of uncertainty on M&A volumes. Volatility and discussions on recession risks can deter deal-making, as uncertainties make it challenging to value companies accurately. While it may be too early to draw conclusions from the lack of M&A transactions in February, ongoing talks about recession risks could further dampen M&A activities in the months ahead.

Overall, the slow pace of M&A activity in February reflects a cautious approach by investors and companies amidst economic uncertainties and market volatility. The rest of the year will likely see an uptick in deal-making as confidence and market stability improve. However, the near-term outlook remains uncertain, with various factors potentially influencing M&A trends and market dynamics.