Deal Drivers: APAC provides an in-depth review of M&A activity in 2025.

Dealmakers pause for breath as M&A momentum cools

After a blistering H1, APAC’s M&A market lost a step in Q3. Deal value dropped to US$215bn, a sharp 27.7% decline from Q2 and 9.2% lower year-on-year. Meanwhile, volume slipped 12.2% to 2,462 deals. The slowdown follows two quarters of exceptionally strong big-ticket activity. This suggests buyers are pausing to digest earlier transactions and reassess valuations. Nevertheless, 2025 remains on a firmer footing than recent years. Through three quarters, aggregate deal value is up 45.5% on Q1-Q3 2024.

Dry powder thins

Private equity activity eased notably in Q3, in line with the broader M&A slowdown. Financial sponsors completed 553 buyouts worth US$41.8bn in total, down 11.8% and 16.8% year-on-year respectively.

Strategic strength

APAC’s largest Q3 deal saw Sony Group execute a partial spin-off of Sony Financial Group. They distributed over 80% of its shares to existing Sony shareholders. The US$7bn move decouples Sony’s financial services arm from its broader entertainment and electronics portfolio. It is intended to allow more transparent valuation, governance focus, and capital allocation for each entity. This is a clear example of Japan’s corporate reforms continuing to bear fruit.

Published in association with Datasite. The report is also available on datasite.com.