euronews.com
Global M&A Market Shows Resilience Amidst Economic Headwinds
Global M&A activity reached \$2 trillion in the first half of 2025, driven by easing inflation and interest rates, despite economic headwinds and US trade policy uncertainty; European dealmaking is also experiencing a surge, though regulatory hurdles remain.
- How have valuation gaps impacted M&A activity, and how are companies addressing this issue?
- Easing inflation and interest rates have reduced valuation gaps, a major obstacle in recent years. This is enabling more deals to close, as buyers and sellers can better align expectations on company worth. The shift is particularly notable in Europe, where the Draghi report spurred optimism for increased consolidation.
- What is the current state of the global M&A market, and what are the key factors driving its performance in the first half of 2025?
- Global M&A activity reached \$2 trillion in the first half of 2025, a 13.6% and 16.2% year-on-year increase in deal value and transactions, respectively. Despite economic headwinds, this signifies surprising resilience in the market. The European M&A count is also pacing for its best year in over a decade if the first-half deal volume is repeated.
- What are the long-term implications of the current M&A trends, considering geopolitical shifts, technological advancements, and regulatory environments?
- The M&A landscape is being reshaped by factors including the green transition and AI. Companies are selling non-core units or acquiring others to adapt to these changes and geopolitical shifts, particularly in sectors facing cost pressures like autos and chemicals. The EU's approach to merger approvals will remain crucial, impacting the ability of European companies to compete globally.
Cognitive Concepts
Framing Bias
The article frames the M&A market as surprisingly resilient and optimistic, particularly in Europe. This positive framing is established early and reinforced throughout the piece through the use of quotes highlighting positive trends and downplaying challenges. For example, the headline could focus on the challenges, resulting in a less optimistic tone.
Language Bias
The language used is generally neutral and objective, relying on data and expert quotes to support claims. However, words and phrases like "stellar rebound", "catastrophic", and "rain on the parade" inject some subjective tone. While not overtly biased, these phrases could subtly shape reader perception. More neutral alternatives could include "significant recovery", "substantial decline", and "hindered progress".
Bias by Omission
The analysis focuses primarily on the European and global M&A landscape, with limited detail on specific regional variations within those areas. While the article mentions the US and its trade policies, the impact on other regions isn't deeply explored. The article also doesn't delve into the perspectives of smaller companies or those outside of the financial sector involved in M&A activities. Omission of these perspectives could limit a complete understanding of the impact of the described trends.
False Dichotomy
The article presents a somewhat balanced view, acknowledging both challenges and opportunities in the M&A market. However, the framing of "optimism" versus "uncertainty" could be seen as a false dichotomy. The reality is likely more nuanced, with varying levels of both across different sectors and geographies. There is not an explicit eitheor presented, but the overall narrative leans toward a more positive outlook which may not reflect the full spectrum of situations.
Sustainable Development Goals
The article highlights a resilient global M&A market in the first half of 2025, with a total deal value reaching $2.0 trillion. This signifies economic activity and potential job creation through mergers and acquisitions, contributing to economic growth. The increased M&A activity in Europe, potentially the best year in over a decade, further supports this positive impact on economic growth and job creation. The discussion around companies reassessing priorities and using M&A to adapt to the green transition and AI also suggests a shift towards more sustainable and innovative economic activities.