European and Asia-Pacific buyers are leading the global M&A market in 2025, outperforming benchmarks as U.S. dealmakers retreat. A wave of resilience-focused, value-oriented deals is reshaping where and how CFOs deploy capital in a volatile landscape.
The global M&A market may be grappling with heightened volatility, but the first half of 2025 reveals a sharply divergent story depending on where you look.
While North America is stuck in a subdued phase, European and Asia Pacific dealmakers are quietly reclaiming ground—and, in some cases, outpacing expectations.
New figures from WTW’s Quarterly Deal Performance Monitor, produced in partnership with Bayes Business School, show that European acquirers outperformed their regional index by an average of +9.4 percentage points on deals over $100 million.
That marks a stark reversal from the same period last year, when they underperformed by -9.2pp.
UK-based dealmakers mirrored that upswing, reinforcing the idea that European firms are beginning to adapt more nimbly to global disruption.
With 64 deals completed in the region—virtually identical to the 65 completed in H1 2024—the focus is not on volume, but on quality and execution.
Asia Pacific buyers also returned to positive territory, with completed deals climbing from 69 in the first half of 2024 to 100 in 2025.
That uptick—led almost entirely by a surge in Chinese dealmaking—has translated into performance +3.9pp above the regional index.
The data shows a nearly threefold increase in Chinese-led deals, from 12 to 33 year-on-year.
It’s a sign that buyers in the region are recalibrating their playbooks, potentially in anticipation of longer-term supply chain or geopolitical shifts.
In contrast, deal volume in North America has slumped to its lowest level in four years. Just 160 transactions were completed in the first half of 2025, down from 187 last year and 292 in 2021. That’s a 55% drop from the region’s post-pandemic peak.
Even more telling: North American acquirers have now logged ten consecutive quarters of underperformance relative to their index.
Although this quarter’s -2.5pp gap is better than last year’s -12.4pp, the trend line remains troubling.
According to WTW’s Head of Europe M&A Consulting, Jana Mercereau, “For all the surprises this year, from tariff uncertainty to regional conflicts, deals are still getting done.”
She notes that in Europe and Asia, dealmakers are embracing longer-term, more pragmatic M&A strategies, in sharp contrast to North America’s apparent risk aversion.
Globally, M&A volumes remain stable: 339 deals valued at over $100 million were completed in H1 2025, compared with 332 last year.
Large deals (>$1 billion) increased to 82 from 69, although mega-deals (> $10 billion) dropped from nine to just three.
This suggests a growing appetite for scaled, yet calculated, dealmaking—likely a response to elevated execution risk and funding constraints.
M&A performance has also recovered modestly: global buyers outperformed the market by +0.2pp, marking the first positive H1 return since 2021.
While incremental, it’s a meaningful departure from the -11.1pp underperformance logged in H1 2024.
Some sectors stand out more than others. Telecommunications and materials led the field with returns of +28.6pp and +11.6pp, respectively.
Large deals continue to drive value (+6.1pp), while smaller (<$1 billion) and cross-sector transactions underperformed (-2.2pp and -3.1pp).
One undercurrent to watch: the impact of tariff regimes on deal strategy.
Mercereau predicts a wave of dealmaking in tariff-exposed sectors, particularly those with intricate cross-border supply chains.
“A ‘survival of the fittest’ dynamic looks primed to trigger a wave of M&A,” she says, as companies seek to localize operations and build resilience against geopolitical shocks.
For CFOs weighing their own M&A agenda, the message is twofold: geography matters, and so does timing.
While headline figures suggest cautious optimism, regional disparities are widening. European and Asia Pacific acquirers are finding ways to unlock value—even in an environment that still punishes missteps.
The North American lull may represent temporary risk aversion, or it may reflect structural headwinds that require more fundamental shifts in corporate strategy.
Either way, the momentum currently sits elsewhere.
And while megadeals are down, the volume of large transactions suggests that well-capitalized buyers aren’t standing still—they’re just thinking more deliberately.
As we walk into the second half of 2025, expect dealmakers outside the U.S. to set the pace. Those who find smart ways to localize, derisk, and recalibrate may come out of this cycle stronger than they went in.
In this market, agility and endurance are more valuable than ever.