Global merger and acquisition (M&A) activity in the financial services rose in 2025, as “megadeals” valued at upwards of $1 billion fuelled the action, according to data from EY.
The firm’s recent analysis, which looked at dealmaking in North America (Canada and the U.S.), Europe, and Asia and Oceania, showed that 2,236 deals were publicly disclosed by banks, insurers and asset managers last year. This was an increase from 2,219 deals in 2024, “which at the time was a 10-year peak,” the report noted.
Total disclosed value for deals in 2025 “rose significantly” to $418.9 billion from $282.1 billion a year prior. This included 93 deals valued at more than $1 billion, which accounted for 81% of total deal value last year. By comparison, 54 such deals were announced in 2024.
“Market conditions continued to challenge global financial services dealmaking in 2025 but did not dampen investment appetite within the sector. While the number of deals was only up marginally year-on-year, overall value was up 49%. Transactions exceeding $1 billion rose more than 70%, and every region globally reported growth in deal value,” said Omar Ali, EY global financial services leader, in a release.
“With more than 2,000 financial services deals announced or completed worldwide in 2025 — including 93 megadeals — growth, scaling, and innovation are clearly at the top of the agenda, and firms are increasingly emboldened to transact higher-quality assets that command premium valuations to achieve their competitive goals.”
Roughly 10% of all dealmaking in the financial services in 2025 was driven by private equity or venture capital firms. Other transactions took place between corporate institutions, EY noted.
Regional breakdowns
In Canada and the U.S., M&A activity in the financial services was down in 2025. There were 947 publicly disclosed deals, compared to 998 a year earlier, amounting to a 5% year-over-year decline. At the same time, total disclosed deal value increased to $188.7 billion from $166.9 billion in 2024.
In Europe, there was a 6% increase in publicly disclosed deals on an annual basis, with 759 deals struck in 2025, compared to 715 the previous year. Total disclosed deal value also ballooned to $141.2 billion from $49.5 billion. Thirty of the deals reported across the region were valued at more than $1 billion, and two surpassed $10 billion in value.
In Asian and Oceanian markets, M&A activity was up by 0.8% on an annual basis, as 360 publicly disclosed deals were struck in 2025, compared to 357 a year prior. Total disclosed deal value increased in these markets as well, rising to $65.5 billion from $40.4 billion.
Sector-based breakdowns
In Canada and the U.S., dealmaking in banking and the wealth and asset management sectors was up on a year-over-year basis, while the number of insurance deals was down.
Banking deals in the North American countries rose on an annual basis to 270 from 236, while deal value increased to $119.1 billion from $78.7 billion. Insurance deals were down to 355 from 455, and deal value fell in the space to $41.6 billion from $48.7 billion. Wealth and asset management deals were up to 322 from 207, while deal value in the sector declined to $27.9 billion from $39.5 billion.
The report further noted that the number of non-U.S. or Canadian firms acquiring U.S. and Canadian targets increased to 52 in 2025 from 39 in 2024, and the total disclosed deal value climbed to $16.3 billion from $12.1 billion a year earlier. One such notable deal includes U.A.E.-based Mubadala Capital’s acquisition of Toronto-headquartered CI Financial Corp.
The number of U.S. and Canadian firms acquiring targets from other markets increased on an annual basis to 148 from 107. Total disclosed deal value also increased nearly tenfold to $51.8 billion from $5.8 billion. For example, Canada’s Canaccord Genuity Group Inc. acquired U.K.’s Brooks Macdonald International Ltd. and Australia’s Wilson Advisory in 2025.
In Europe, the number of deals in banking and the wealth and asset management sectors was also up, while the number of insurance deals fell.
Banking deals in the region increased to 219 from 183 on a year-over-year basis, while deal value more than quadrupled to $73.5 billion from $17.5 billion. Insurance deals fell to 297 from 309, while deal value more than quadrupled to $49.2 billion from $11.1 billion. Wealth and asset management deals rose to 243 from 223 deals, but deal value declined to $18.5 billion from $20.9 billion.
The number of non-European firms acquiring European targets increased to 119 in 2025 from 107 a year earlier, while total disclosed deal value “increased significantly” to $47.9 billion from $5.1 billion. A slightly higher number of European firms acquired targets from other markets (66, up from 64), with total disclosed deal value rising to $8.4 billion from $5.1 billion.
Across Asian and Oceanian markets, there was an increase in dealmaking in the insurance sector. Publicly disclosed deals in banking and the wealth and asset management sectors fell.
On a year-over-year basis, banking deals in these markets declined to 185 from 190, but deal value in this segment increased to $45.1 billion from $31.8 billion. Insurance deals were up to 87 from 69, while deal value shot up to $11.1 billion from $6.3 billion. Asia and Oceania’s wealth and asset management sectors saw deals drop to 88 from 98, but deal value “significantly rose” to $9.3 billion from $2.3 billion.
Moreover, fewer firms outside of Asia and Oceania capitalized on dealmaking opportunities in these markets in 2025. The number of non-Asian and Oceanian firms acquiring Asian and Oceanian targets fell to 54 from 56 in 2024, but total disclosed value more than doubled to $10.2 billion from $4.3 billion. The number of Asian and Oceanian firms acquiring targets from other markets rose to 30 from 29, while total disclosed value increased to $19.4 billion from $14.8 billion.
Andre Veissid, EY-Parthenon global financial services industry leader, reflected on the dealmaking activity.
“Looking back at 2025, investor confidence in global financial services dealmaking strengthened steadily, and the year closed with an impressive overall value for M&A,” Veissid said in the release.
“Firms engaged in strategic M&A, and at the top end of dealmaking, more megadeals completed in 2025 than in the two years prior combined, as corporate balance sheets strengthened and regulation softened, especially in the U.S.”
Veissid also shared EY’s outlook for M&A activity.
“Looking ahead, provided inflation and interest rates continue to fall back across major financial markets, confidence is expected to pick up even more. This should boost acquisition appetite further, as firms use M&A activity to support revenue growth and cost optimization.”