M&A Activity Drops to USD 50 Bn in H1 2025

Mumbai, Aug 12 (PTI) Mergers and acquisitions activity dropped to USD 50 billion in the first half of 2025, down 17 per cent when compared with the year-ago period, a report said on Tuesday.

When compared with the July-December 2024 period, there was a 2 per cent increase in the value, leading authors at the consultancy firm EY to term the H12025 activity as defying global headwinds and policy uncertainties.

From a volume perspective, the number of transactions dropped 12 per cent on-year to 1,285, it said, adding that there is a shift in investor strategy to prefer fewer, high-value bets which are strategic in nature.

"The rise in large ticket deals despite a drop in volume reflects a flight to quality, driven by macro concerns and a changing regulatory environment," its partner Ajay Arora said.

The first six months of the year had 10 deals of over USD 1 billion each, which is double the number seen in both halves of 2024, it said.

Power sector led the overall activity with over USD 8.5 billion in deal value, driven by renewable energy contributing 80 per cent of it, the report said.

Looking ahead, the report said last week's doubling of tariffs by the US administration on Indian exports has reintroduced uncertainty into the trade environment.

"The industry awaits clarity on tariff structures, regulatory frameworks, and market access which will decide the fate of transactions especially in businesses which have US exposure," the report said.