APAC's M&A market saw a 9.2% year-on-year drop in deal value in the third quarter of 2025 following two quarters of exceptionally strong big-ticket activity.
According to a report by Mergermarket and Datasite, the decline could be attributed to buyers 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.
The report also found that private equity activity eased notably in the third quarter of 2025, in line with the broader M&A slowdown. Financial sponsors completed 553 buyouts worth US$41.8 billion in total, down 11.8% and 16.8% year-on-year respectively.
Across corporate and sponsored M&A, the technology, media, and telecommunications (TMT) sector tops by volume with 575 deals announced, though that represents a 22% year-on-year decline, and aggregate value dropped 31.5% to US$23.9 billion.
I&C’s contribution of 456 deals held comparatively steady with just a 3% slip, while total value moved down 7.7% to US$48.4 billion.
Financial services was the only major sector to record value growth, rising by a modest 5.7% to US$25.9 billion.
APAC’s largest Q3 deal saw Sony Group execute a partial spin-off of Sony Financial Group, distributing over 80% of its shares to existing Sony shareholders. The US$7 billion deal 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.
