UK mergers and acquisitions (M&A) activity in the first half of 2025 (H1’25) recorded a total deal value of £57.3 billion, according to PwC’s latest Global M&A Industry Trends report. This represents a 12.3% decline compared to £65.3 billion in the same period in 2024 (H1’24). Deal volume also softened, with the UK seeing 1,478 transactions in H1’25, down 19.1% from 1,828 in H1’24, reflecting a more selective market environment.
Despite the contraction in overall deal volume, the average deal size reached £169.2 million, based solely on transactions with disclosed values. This signals a pivot towards fewer but more strategic transactions. This concentration of capital reflects renewed confidence in high-value dealmaking, particularly in sectors such as Financial Services, Technology, Media and Telecommunications, and Industrials and Services.
The uplift in average deal size was driven by a wave of large-scale investments, as investors sought resilient assets and long-term growth opportunities. The data suggests that while caution persists in some areas of the market, strategic capital deployment is accelerating where underlying conditions are strong.
Lucy Stapleton, Global Head of Deals at PwC UK, said:
“The UK M&A market in 2025 has been characterised by a sense of restrained momentum. There’s a strong pipeline of deals ready to go, but many remain paused due to ongoing volatility. That said, the fundamentals are encouraging as interest rates are easing, liquidity is improving, and equity markets are strong. We’re seeing a shift from passive optimism to active investment.
“Investors are focusing on value creation, with a clear deal objective and a willingness to deploy capital into sectors where growth is critical, including technology, infrastructure, and energy. When confidence returns more broadly, we may see a sharp uptick in activity, and those who are prepared will be best placed to seize the opportunity.”
Industry M&A Trends
UK M&A activity by industry for H1’25 shows that Industrials and Services led the market with 400 deals, over half of which were in the business services sector where investors remain focused on scalable, tech-enabled and resilient sectors. This is followed by Consumer Markets (310 deals) and Technology, Media and Telecommunications (307 deals).
In terms of deal value, Financial Services topped the charts with £17.0 billion, largely driven by four deals each greater than £1 billion in value. This is followed by Technology, Media and Telecommunications (£10.8 billion) and Industrials and Services (£10.8 billion).
Colin Smith, Partner at PwC said:
“Industry dynamics are playing a decisive role in shaping deal activity. We’re seeing strong momentum in sectors like financial services, where consolidation and digital transformation are driving high-value transactions. Meanwhile, industrial sectors continue to attract interest for their resilience and scalability. The data shows that investors are not just chasing growth but are targeting sectors where structural change is creating long-term opportunity.”
Outlook
The UK M&A market is poised for further growth in H2 2025, contingent on macroeconomic stability and resolution of geopolitical uncertainties. With capital for dealmaking available and strategic imperatives clear, current conditions suggest a stable environment for dealmaking.
Lucy Stapleton added:
“Key sectors continue to attract investment, driven by long-term strategic priorities and megatrends such as digital transformation, energy transition, and healthcare innovation. This isn’t just about operational improvement. It’s about generating real value by supporting management teams, investing in transformation, and understanding how assets fit into broader ecosystems.”
Ends
Notes
PwC’s Global M&A Industry Trends is a semi-annual analysis of global deals activity across eight industries — consumer markets; energy, utilities and resources; financial services; health industries; industrials and services; private equity and principal investors; real estate and real assets; and technology, media and telecommunications. Read more here; https://www.pwc.co.uk/services/value-creation/insights/mergers-and-acquisitions-trends.html
About the data: Our commentary on M&A trends is based on data from industry-recognised sources and our own independent research. Specifically, deal volumes and values referenced in this publication are based on officially announced transactions, excluding rumoured and withdrawn transactions, as provided by the London Stock Exchange Group (LSEG) as of 30 June 2025 and as accessed between 1-4 July 2025. Certain adjustments to source data have been made to align with PwC’s industry mapping. To facilitate meaningful comparisons with prior half-year periods, the LSEG deal volumes and values data for the first half of 2025 (denoted as H1’25) is an estimate based on the first half of the year, with the June data adjusted upwards to reflect an average reporting lag.
Deal values are reported by LSEG in US dollars. We have used an average exchange rate for H1’25 (1 GBP = 1.299 USD) to convert US dollar amounts into GBP.
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