Europe and Asia outpace US in M&A surge despite global volatility, says WTW

European and Asia Pacific dealmakers outperformed their global peers in the first half of 2025, as mergers and acquisitions (M&A) activity thrived in the face of a broader global slowdown and persistent market uncertainty, according to WTW’s latest Quarterly Deal Performance Monitor.

Based on share price movements for transactions valued over $100m, European acquirers beat their regional index by +9.4 percentage points during the period.

That marks a sharp reversal from the -9.2pp underperformance recorded in the first half of 2024. UK dealmakers mirrored the continent’s broader success, with steady volume of 64 deals compared to 65 during the same period last year.

Asia Pacific buyers also made gains, outperforming their regional index by +3.9pp. Deal volume in the region surged from 69 in H1 2024 to 100 so far this year, a rise largely driven by a resurgence in Chinese M&A. China saw 33 deals completed in the first six months of 2025, up from just 12 a year earlier.

By contrast, North America’s downturn continued. The region saw just 160 deals completed in H1 2025, compared to 187 in the same period last year and 292 in H1 2021 — representing a 55% fall over four years.

North American acquirers also underperformed their index by -2.5pp, although that was an improvement on the -12.4pp recorded in H1 2024. The region has now logged ten consecutive quarters of negative performance.

“For all the surprises this year, from tariff uncertainty to regional conflicts, deals are still getting done,” said Jana Mercereau, head of European M&A consulting at WTW.

“While M&A in North America faces mounting headwinds, dealmaking thrives in Europe and accelerates in Asia, as buyers adapt to rising market volatility by approaching deals with a longer-term, more pragmatic view to achieve maximum value.”

WTW’s findings, based on share price performance of acquiring companies and compiled in partnership with the M&A Research Centre at Bayes Business School, suggest dealmakers are adjusting to heightened geopolitical risk.

Mercereau added: “In response to tariff tensions, a ‘survival of the fittest’ dynamic looks primed to trigger a wave of M&A activity in certain sectors. Dealmakers in tariff-exposed industries with complex cross-border supply chains may increasingly look to localise supply chains in a bid to make themselves more resilient and resistant to the more volatile geopolitical backdrop.”

Globally, 339 deals valued over $100m were completed in the first half of 2025, broadly in line with the 332 transactions recorded during the same period in 2024. There were 82 large deals (valued over $1bn), up from 69 a year ago. However, only three mega-deals (over $10bn) were completed, compared to nine in H1 2024.

Overall, buyers worldwide outperformed the market by +0.2pp, marking the first positive half-year result since 2021 and a notable turnaround from the -11.1pp underperformance seen last year.

Among the standout sectors, telecommunications led the way with a +28.6pp gain, followed by materials at +11.6pp. Large transactions (over $1bn) were the best performing deal type (+6.1pp), while smaller and cross-sector deals struggled to add value, underperforming by -2.2pp and -3.1pp respectively.

“Geopolitical uncertainty may be the new normal, yet dealmakers are finding ways to adjust and navigate today’s more complex and unpredictable market to successfully unlock long-term value from M&A,” said Mercereau.

“While North America remains stuck on the sidelines, Europe and Asia will continue to set the pace, where momentum is building and there are signs that dealmaking will accelerate in 2025,” Mercereau added.