M&A Deals Thriving in 2025: ETFs in Focus

Wall Street is experiencing a blockbuster year for mergers and acquisitions. So far, companies have announced 49 global transactions worth more than $10 billion each, according to Mergermarket, as quoted on Yahoo Finance. Such activities put focus on NYLI Merger Arbitrage ETF MNA. MNA is up about 8.6% so far this year.

M&A value hit $3.39 trillion this year, although the deal count fell to an almost all-time low level. The above-said 49 megadeals were announced at a value of 986 billion — the highest recorded by Mergermarket, as quoted on Ion Analytics.

In August 2025, a Reuters article reported that global deal activity has reached $2.6 trillion, the highest total for the first seven months of a year since the 2021 pandemic-era peak. Although the number of deals was down 16% till August compared to last year, the value of transactions was up 28%, thanks to U.S. megadeals topping $10 billion, according to Dealogic data, as quoted in the same Reuters article.

Volume Down, But Value Up?

Note that 16,663 deals were announced in the first half of 2025, which is the lowest since the first half of 20025, per Mergermarkets, as quoted on Ion Analytics. U.S. technology, Chinese banking, and Japan’s automotive industry have boosted the mega deal formations, per the above-mentioned source.

North American M&A volume increased 35% year on year in the first nine months of 2025, the second-best year on record after 2021, the above source went on to reveal. In EMEA region, M&A activity gained steam in the Nordic region and the Netherlands, per Mergermarket, as highlighted by Ion Analytics.

Inside the Mega Deals

Some of the standout transactions include a $55 billion leveraged buyout of Electronic Artsannounced Monday, Union Pacific’s $85 billion merger with rival Norfolk Southern (NSC) in July and Google’s $32 billion acquisition of cloud security firm Wiz in March, the Yahoo Finance articled noted.

Investment Banks Reap Returns

Deal-makings are always a boon to investment banks. Jefferies Financial Group JEF recently reported a record $655.6 million in M&A advisory revenues for the three months ending in August. That figure marks a 10% increase year over year for the firm’s mergers and acquisitions business, the above-mentioned Yahoo Finance article went on to highlight. ETFs like iShares U.S. Broker-Dealers & Securities Exchanges ETF IAI and Invesco KBW Bank ETF KBWB should thus benefit from such activities.

AI to Rule M&A Activities?

Earlier in the year, companies were cautious due to President Donald Trump’s tariffs and geopolitical risks. While trade tensions are still there, the severity of the threat has ebbed in the past months.

We should expect more M&A deals ahead mainly in the AI arena. Tech companies are leaving no stone unturned to unlock value in the AI space. Roundhill Generative AI & Technology ETF CHAT should gain further traction on this ground. The ETF is up about 50% this year.

Note that AI’s transformative potential is leading to more than $1 billion of daily investment in R&D, capital projects, partnerships, and acquisitions, indicated Barry Jaber, Strategy&, Global Technology and Telecommunications Deals Leader, PwC UK, as quoted on a PWC.com article.

A Fall in Interest Rate: A Boost to M&A?

The Fed enacted its first rate cut of 2025 in September and cut the same even more in the coming days. If the move helps in dragging down the long-term bond yields, M&A activities should gain as debt financing will be cheaper.

However, globaleconomic growth is still not very sound, and Trump administration policy uncertainty might undermine business confidence occasionally.

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This article originally published on Zacks Investment Research (zacks.com).

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