By Sabrina Valle
NEW YORK, Dec 3 (Reuters) - The "fertile" conditions driving dealmaking in 2025 will persist through the end of the year and into the next as CEOs look for scale and private-equity firms offload aging assets, according to Michal Katz, Mizuho Americas head of investment and corporate banking.
This year was dominated by megadeals over $10 billion, which more than doubled year-over-year to $1.3 trillion through Tuesday, according to data compiled by Dealogic. That included an $85 billion rail transaction, a $40 billion data center deal, and the largest leveraged buyout ever — a $55 billion take-private of Electronic Arts, Katz said at the Reuters NEXT conference in New York on Wednesday.
She cited pent-up demand for M&A and a desire by CEOs to "future-proof" their companies as artificial intelligence upends old business models.
"Companies want to lean into some of those multi-year, multi-decade, secular investments, and so we are very much talking to clients today about setting themselves up for 2026," she said.
That disruption will also give rise to more mid-sized transactions under $10 billion, she said, which will support more M&A activity for PE firms.
Katz also highlighted record levels of shareholder activism in 2025, with investors pushing companies toward event-driven exits, and noted that while AI and tech dominated returns in the S&P 500, healthcare has recently emerged as an active sector. Deals such as Pfizer’s acquisition of Metsera, Abbott Labs’ purchase of Exact Sciences, and activity from Thermo Fisher and Novartis point to a broadening of M&A beyond technology.
Katz noted that recent strains in private credit markets, including high-profile bankruptcies, have prompted lenders and investors to tighten standards. While she described these issues as “idiosyncratic and not systemic,” she said they are driving greater scrutiny of documentation and transparency.
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(Reporting by Sabrina ValleEditing by Dawn Kopecki and Rod Nickel)
((sabrina.valle@tr.com; Twitter: @sabrinavalle;))