Despite a challenging start to 2025 for global mergers and acquisitions, the Asia-Pacific (APAC) region recorded steadier performance relative to other markets, according to new data from GlobalData.
From January through May 2025, APAC’s deal activity slipped by 2% year-over-year (YoY), a smaller decline compared to those observed in North America, Europe, the Middle East and Africa, and Latin America.
While global M&A activity declined by approximately 4% YoY in the first five months of 2025, regional data showed greater volatility elsewhere.
Latin America experienced the sharpest drop at 12%, followed by a 9% fall in the Middle East and Africa, a 6% dip in Europe, and a 4% decrease in North America.
In contrast, APAC’s more limited contraction suggests relative resilience in corporate transactions.
Aurojyoti Bose, lead analyst at GlobalData, said some APAC markets have shown promising growth, indicating a nuanced environment for investors and businesses alike. He added that the resilience of certain deal types, particularly M&A, has also provided a silver living in an otherwise challenging landscape.
Notably, M&As in APAC rose by roughly 4% YoY, according to GlobalData’s findings. This uptick signals that firms continue to pursue acquisition-led strategies, despite broader macroeconomic uncertainty.
In contrast, private equity (PE) and venture capital (VC) transactions declined by approximately 10% and 8%, respectively.
The divergence in deal types may reflect changing investment strategies amid ongoing volatility.
Individual APAC countries showed varied deal performance.
China, historically a major contributor to regional M&A volume, saw an 8% decline.
Meanwhile, India and Japan recorded increases of 7% and 23%, respectively.
Other markets, including Australia, Singapore, South Korea, and Malaysia, registered decreases.
“While the overall APAC deal landscape has faced slight downturn and challenges persist, the growth in M&A activity and the resilience of markets like India and Japan highlight the region’s potential,” Bose said.
Additional insight into the global M&A climate comes from a Norton Rose Fulbright survey conducted by Mergermarket in Q1 2025.
Initially, over half of executives surveyed (53%) anticipated increased M&A appetite compared to 2024.
However, following the US government’s imposition of new tariffs in April 2025, sentiment reversed. Nearly 70% of respondents reported diminished deal appetite due to escalating trade tensions and persistent supply chain disruptions.
Executives also cited difficulties in securing financing and managing localised economic risks as barriers to transaction execution.
Technology continues to influence dealmaking. According to the survey, 51% of respondents had already acquired AI-focused businesses, while 46% planned similar deals in the near term – up from 33% in 2024. Firms are increasingly integrating AI for pre-deal analysis, diligence, and execution.
As traditional financing tightens, private credit is being used to bridge funding gaps. One-quarter of executives identified it as a preferred financing source for upcoming deals, especially in unstable financial environments.
Usage of transactional insurance is also expanding. Sixty-five percent of respondents forecast greater use of representations and warranties (R&W) coverage in 2025, including 37% who expect significant growth. The Middle East is predicted to see the highest increase in adoption.
