In 2025, M&A will experience a significant resurgence across various industries. A notable indicator of this trend is the increase in high-value deals: transactions valued at over $1 billion rose from 430 in 2023 to more than 500 in 2024.
This reflects a strategic shift among companies aiming to enhance competitiveness, expand market reach, and innovate through consolidation.
Technology Sector Upcoming M&A in 2025
The technology sector is set for significant M&A in 2025, with major corporations strategically positioning themselves to enhance their market presence and technological capabilities.
Two notable focus areas are AI integration and the semiconductor industry’s consolidation.
AI Integration
As AI revolutionizes various industries, technology giants actively seek acquisitions to bolster their AI capabilities.
Alphabet and Wiz
A prime example is Alphabet Inc.’s recent agreement to acquire the cybersecurity firm Wiz for $32 billion, marking its largest acquisition. This strategic move aims to enhance Google’s cloud security offerings, mainly as businesses increasingly adopt multi-cloud environments.
By integrating Wiz’s advanced security tools, Google intends to manage data more effectively and protect against vulnerabilities in the evolving AI landscape.
SoftBank Group and Ampere Computing
Another significant development is SoftBank Group Corp.’s acquisition of semiconductor designer Ampere Computing for $6.5 billion. This deal underscores SoftBank’s commitment to advancing AI infrastructure, as Ampere is renowned for its high- performance data-center processors utilizing Arm Holdings technology.
The acquisition aligns with SoftBank’s strategy to expand its AI portfolio, complementing previous investments such as the 2016 acquisition of U.K.-based chip designer Arm.
Semiconductor Industry Consolidation
The semiconductor industry is experiencing a wave of consolidation driven by the need to enhance production capabilities and address the growing demand for advanced technologies.
Samsung Electronics, for instance, has announced plans to pursue significant mergers and acquisitions to drive growth after facing criticism over weak earnings and missing AI market trends. Samsung’s CEO, Jun Hyun, acknowledged that Samsung was late to market trends and missed early opportunities in high-bandwidth memory (HBM) chips, which are significant for AI projects. Jun expressed hopes of regaining competitiveness in 2025.
Additionally, the semiconductor industry is expected to initiate 18 new fabrication plant construction projects in 2025, indicating robust growth and the necessity for increased production capacity. These projects include three 200mm and fifteen 300mm facilities, with the majority anticipated to commence operations between 2026 and 2027.
Energy Sector Upcoming M&A in 2025
The energy sector is experiencing a dynamic shift in 2025, with M&A playing a pivotal role in reshaping the industry landscape.
Apollo’s Acquisition of OEG Energy Group
Apollo, a leading global alternative investment manager, has agreed to acquire a majority stake in the UK-based OEG Energy Group, valuing the company at over $1 billion. Established in 1973, OEG provides offshore oil, gas, and wind production services, operating in 65 countries with 1,300 employees.
This acquisition reflects investors’ confidence in the rising power demand, particularly from data centers and AI applications. OEG anticipates revenues exceeding $500 million in 2024, with more than half expected from renewable energy sources, aiming for $1 billion in annual revenue by the decade’s end, driven by the growth of offshore wind farms.
Eni’s Divestment to Vitol
Italian energy conglomerate Eni has agreed to sell stakes in oil and gas assets located in Ivory Coast and the Republic of the Congo to global energy trader Vitol for $1.65 billion, subject to cash adjustments at closing. The transaction includes a 30% stake in Ivory Coast’s Baleine project and a 25% stake in Congo’s LNG project. This divestment aligns with Eni’s strategy to generate quick income by spinning off shares in high- potential projects. The Baleine field, discovered in 2021, currently produces over 60,000 barrels of oil equivalent per day, while the Congo LNG project, which began exports in February 2024, produces 1 billion cubic meters of LNG annually. Reuters
Surge in U.S. Power Sector M&A Driven by AI Demand
The U.S. power industry is witnessing a surge in M&A activity in 2025, propelled by the increasing electricity demand from data centers supporting AI technologies. This heightened demand has made power generation and infrastructure assets attractive to energy companies, private equity firms, and institutional investors.
Constellation Energy’s $16.4 billion acquisition of Calpine underscores this trend. The power sector is experiencing a record number of deals, contrasting with the overall slow M&A market in other sectors due to economic uncertainties. High electricity demand has boosted the share prices of power companies, enabling more significant transactions.
Consolidation in the Oilfield Service Sector
According to Deloitte’s 2025 Oil and Gas Industry Outlook, there is an expected increase in consolidation within the oilfield service sector in 2025, spurred by anticipated regulatory easing under President Donald Trump.
This follows several major mergers among oil producers, including Exxon Mobil with Pioneer Natural Resources and ConocoPhillips with Marathon Oil. Smaller oilfield companies may seek mergers due to a consolidating customer base.
The prolific Permian basin is projected to see increased crude output in 2025. Throughout the first nine months of 2024, oilfield service deals hit $19.7 billion. A more lenient administration and an active merger environment support the potential for further consolidation.
Beach Energy’s Expansion in Queensland
Backed by Kerry Stokes’ Seven Group Holdings, Beach Energy is targeting Queensland for CSG acquisition opportunities to expand across Australia’s east and west coasts. The goal is to leverage Queensland’s new government support for CSG projects to boost job creation and growth.
Financial Service Upcoming M&A in 2025
The financial services sector is experiencing a notable surge in M&A in 2025, driven by technological advancements, regulatory changes, and the pursuit of operational efficiencies.
Traditional Banking Consolidation
Several significant M&A activities are reshaping the traditional banking landscape:
- UniCredit’s Strategic Moves: UniCredit has received approval from the European Central Bank (ECB) to acquire up to 29.9% of Commerzbank, marking one of Europe’s largest cross-border banking deals since the global financial crisis.
- Regional Bank Mergers: Smaller banks, particularly those with assets under $10 billion, are under increasing pressure to merge due to rising technology and regulatory compliance costs. Institutions like Capitol Federal Financial, Trustco Bank Corp., Hanmi Financial Corp., Heritage Financial Corp., and Central Pacific Financial Corp. are potential candidates.
Fintech Collaborations and Acquisitions
The integration of financial technology (fintech) into traditional banking services is a significant driver of M&A activity:
- Buy Now, Pay Later (BNPL) Integration: Traditional banks and credit providers seek to integrate BNPL services into their offerings to compete with fintech disruptors. This strategy aims to enhance customer acquisition and retention by providing flexible payment options.
- Merchant Services Enhancement: Acquisitions in the merchant services sector are focused on enhancing fraud detection and expanding cross-border payment capabilities. Financial institutions are investing in technologies that streamline payment processing and improve security measures to meet the evolving demands of global commerce.
Insurance Sector Consolidation
The insurance industry is also witnessing consolidation efforts:
- Viridium Group Acquisition: A consortium comprising Allianz, BlackRock, and T&D Holdings has acquired a majority stake in Germany’s Viridium Group for €3.5 billion. This move reflects a strategic effort to consolidate life insurance portfolios and optimize asset management within the sector.
Regulatory Environment and M&A Outlook
The current regulatory landscape is influencing M&A activities:
- Favorable Conditions: A more favorable regulatory environment and stronger capital markets will spur deal-making and a robust rebound in M&A activities 2025. Financial institutions leverage these conditions to pursue strategic acquisitions aligning with their growth objectives.
- High Valuations and Strategic Discernment: Despite the conducive environment, some institutions, such as NatWest, are exercising caution due to high valuations in the market. NatWest CEO Paul Thwaite emphasized that any acquisition must meet stringent financial, strategic, and operational standards, reflecting a prudent approach to M&A.
Healthcare and Pharmaceuticals Upcoming M&A in 2025
The healthcare and pharmaceutical sectors are experiencing a significant surge in M&A in 2025, driven by the need for innovation, market expansion, and operational efficiency.
Formation of a $1 Billion Healthcare Software Entity
In a notable development, Medalogix and Forcura have merged to create a healthcare software company valued at nearly $1 billion. Backed by Berkshire Partners, this merger combines Medalogix’s data science and machine learning expertise with Forcura’s workflow management solutions.
Mallinckrodt and Endo’s Strategic Merger
Mallinckrodt’s merger with Endo represents a strategic move to form a diversified pharmaceutical company with a substantial U.S. presence. The merged entity, valued at approximately $6.7 billion, plans to integrate its generic pharmaceuticals and Endo’s sterile injectables operations, intending to separate this unit.
This merger, approved by both companies’ boards, is expected to close in the latter half of 2025, marking a significant consolidation in the pharmaceutical industry.
Johnson & Johnson’s Investment in Cardiovascular Technologies
Johnson & Johnson MedTech has invested over $30 billion in acquisitions to strengthen its position in the cardiovascular sector. The company’s recent acquisitions, including Shockwave Medical and V-Wave, focus strategically on expanding its cardiovascular portfolio and enhancing its medical technology offerings.
Projected Growth in Pharmaceutical M&A
The pharmaceutical industry is poised for continued growth in M&A activities. Projections indicate that global pharmaceutical revenues will grow by 5.8% annually through 2028, driven by expanded insurance coverage, an aging population, and technological advancements in drug development.
Resurgence in Healthcare M&A Activity
Experts anticipate a resurgence in healthcare M&A activity in 2025, attributed to reduced inflation, anticipated interest rate cuts, and a more favorable regulatory environment under the current administration. This optimistic outlook suggests a robust year for dealmaking in the healthcare sector.
Impact of Market Concentration on Health Insurance Costs
The GAO has highlighted that increasing market concentration among fewer insurance companies may contribute to rising health insurance costs. This trend underscores the importance of monitoring the effects of M&A activities on consumer expenses in the healthcare industry.
Conclusion
Businesses must stay informed about upcoming M&A developments to identify opportunities and mitigate risks. Expert guidance is essential whether considering a merger, contemplating an acquisition, or seeking to understand how these activities might impact your industry.
At Now Exit, we provide comprehensive insights and strategic advice tailored to your unique business needs. Our experienced professionals are ready to assist you in making informed decisions that align with your objectives. Contact us today to explore how we can support your M&A endeavors and help you navigate the complexities of today’s market.