Dealmakers Have Their Busiest August Since '21, Reaching $1 Trillion in M&A

Following an August merger and acquisition frenzy, dealmaking during the normally quiet summer months has surpassed the $1 trillion mark.According to data provided by Bloomberg, since the beginning of June, companies have reported deals totaling $1.05 trillion. According to the data, it's the greatest total for this period since the record-breaking summer of 2021, when the pandemic triggered a boom in deals, and it's up 30% from a year ago.Union Pacific Corp.'s agreement to purchase railroad operator Norfolk Southern Corp. for more than $80 billion, including debt, was the largest deal announced so far in 2025. Additionally, Palo Alto Networks Inc. plans to pay roughly $25 billion to acquire cybersecurity firm CyberArk Software Ltd.Thanks to significant acquisitions like Thoma Bravo's $12.3 billion takeover of human resources software company Dayforce Inc. and CommScope Holding Co.'s $10.5 billion sale of a portion to Amphenol Corp., nearly $300 billion worth of deals have been signed in August alone. Ben Sibbett, head of Clifford Chance's Americas corporate practice, said the US administration shift has sparked agreements, even if the impact has been delayed.

"That change has undoubtedly been a catalyst for the increased activity levels we are seeing, even though it has taken longer than we anticipated for M&A markets to pick up," Sibbett stated. "This summer has undoubtedly seen a spike in so-called mega-deals."While AT&T Inc. announced a $23 billion deal to acquire spectrum licenses from EchoStar Corp., Keurig Dr Pepper Inc. agreed to buy JDE Peet's NV for €15.7 billion ($18.2 billion), even in the normally slow week leading up to the US Labor Day weekend. The summer spike demonstrates how dealmakers have recovered well from a dismal start to the year, when excitement about M&A during US President Donald Trump's second term in office was tempered by the uncertainty surrounding his trade conflicts.As buyers and sellers argue over prices and general economic uncertainty persist, many procedures continue to be difficult. That’s kept the number of takeovers essentially steady compared to last year notwithstanding a few headline mergers. Nevertheless, businesses and their advisors are occupied with planning the upcoming wave of high-profile deals.