The corporate world saw a strong revival of large-scale mergers and acquisitions in 2025, with companies spending trillions of dollars to consolidate markets, acquire rivals and secure long-term growth.

Total global merger activity reached an estimated $4.5 trillion in 2025, up about 50% from 2024, driven largely by so-called “megadeals” valued at more than $5bn.

The year’s most significant transaction came from the US transportation sector. Rail operators Union Pacific and Norfolk Southern agreed to merge in a deal worth $88.26bn, including debt. The deal, financed through a mix of stock and cash, is expected to close in early 2027.

In media and entertainment, Netflix agreed to buy Warner Bros. Discovery for $72bn in an all-cash deal after a competitive bidding process. The acquisition gives Netflix control of major film studios and a vast content library, strengthening its position against global streaming rivals.

The utilities sector recorded one of its largest mergers on record when American Water Works agreed to combine with Essential Utilities in a $63bn deal. The companies said the scale of the merged entity would support faster investment in ageing water infrastructure.

Saudi Arabia’s Public Investment Fund led a $55bn buyout of video game publisher Electronic Arts, the largest leveraged buyout in gaming history, while energy major Chevron completed its long-awaited $53bn acquisition of Hess Corporation to secure access to oil assets in Guyana.

Analysts say the surge reflects companies’ efforts to gain scale, technology and resilience in an uncertain global economy.