Source: GlobalData
Supply chain remains resilient in M&A landscape despite 13% YoY fall in deal value in Q1 2025, reveals GlobalData
Posted in Strategic Intelligence
Amid the impact of heightened geopolitical uncertainties and low growth across all the major economies, the first quarter of 2025 saw an overall decline in mergers and acquisitions (M&A) deal value of 13% compared to the same quarter in 2024. Supply chain resilience was the single most important theme, with $84 billion in supply chain-related transactions across 25 deals, covering sectors like healthcare and materials, reveals GlobalData, a leading data and analytics company.
GlobalData’s latest Strategic Intelligence report, “Global M&A Deals in Q1 2025 – Top Themes by Sector,” reveals that mega-deals, deals with a transaction value greater than or equal to $1 billion, decreased by 11% to $453 billion, compared to $507 billion in Q1 2024.
Priya Toppo, Strategic Intelligence Analyst at GlobalData, comments: “Amid rising geopolitical tensions, demographic shifts, stricter ESG regulations, persistent labor shortages, and rapid digital transformation, companies are sharpening their focus on supply chain-related M&A activity. To mitigate risks and boost operational efficiency, they are increasingly investing in resilient, localized, and technology-enabled supply chains. This was especially true in the healthcare, materials, industrials, and consumer sectors.
The biggest supply chain deal was Sycamore Partners’ acquisition of Walgreens Boots Alliance for $23.7 billion. This deal was also the biggest in the consumer sector in Q1 2025. It was followed by Borouge Group International’s acquisition of Nova Chemicals for $13.4 billion and QXO’s acquisition of Beacon Roofing Supply for $10 billion.
Toppo continues: “An ongoing trend is the dominance of North America in M&A deal activity, accounting for 2,920 deals worth $380 million during Q1 2025. However, North America, Europe, China, APAC Ex-China, and the Middle East and Africa all saw a YoY decline in deal value.”
Toppo concludes: “The M&A outlook for the rest of 2025 is cautiously optimistic. Prospects of rate cuts in certain markets and an overall improving global growth outlook could drive increased activity. However, mega-deals may continue to face challenges, particularly in the US, where antitrust scrutiny remains a key focus for regulators.”