Global M&A deal rush fades in third quarter as rising borrowing costs bite
SPY•Global M&A activity totaled $993 billion in the third quarter, down 41% from the prior quarter and the first sub-$1 trillion quarter since the second quarter of 2025. Year-to-date deal value rose 28% to $3.9 trillion, while Asia-Pacific M&A increased 36% year over year to $242 billion in the quarter.
1. Quarterly deal activity
Global M&A totaled $993 billion in the third quarter, down 41% from the prior quarter and marking the first quarter below $1 trillion since the second quarter of 2025. There were 10 deals worth more than $10 billion, the fewest quarterly megadeals since the fourth quarter of 2024.
2. Rates and regional trends
The 10-year U.S. Treasury yield reached 5.34% on Thursday, its highest level since 2002. Asia-Pacific M&A totaled $242 billion, up 8% from the second quarter and 36% from a year earlier, while U.S. and European dealmaking fell sharply in the quarter.
3. Year-to-date picture
Worldwide M&A is up 28% this year to $3.9 trillion, its highest level for the period since 2001, even as the number of deals fell 8%. Strategic purchases of stakes in technology companies accounted for about one-quarter of global M&A so far this year, and cross-border dealmaking rose 32% year over year.
