Morgan Stanley Predicts Surge in M&A Activity, Led by Industrials and Banks

Morgan Stanley's Miles predicts that industrials and banks will drive M&A activity in the coming year. He expects strong deal-making in sectors such as technology, healthcare, and energy, with a focus on bolt-on acquisitions and strategic partnerships. Miles also notes that private equity firms will continue to be active players in the M&A landscape.

Morgan Stanley's Miles predicts that industrials and banks will drive M&A activity in 2025. He expects strong deal-making in sectors such as technology, healthcare, and energy, with a focus on bolt-on acquisitions and strategic partnerships. Private equity firms are also expected to remain active players in the M&A landscape.

Recent data from Intellizence [1] shows a surge in multi-billion-dollar M&A deals in 2025. Notable transactions include the acquisition of Synovus Financial by Pinnacle Financial Partners for $8.6 billion [2], and the $2.99 billion takeover of Bavarian Nordic by Permira and Nordic Capital [3].

In the industrials sector, there has been significant activity. For instance, Emerson Electric Co acquired AspenTech for $7 billion [4], and Honeywell acquired Sundyne for $2.16 billion [5]. These deals reflect a trend towards consolidation and strategic partnerships within the industrial sector.

Banks have also been active in M&A. For example, Nationwide Allstate Corporation's employer stop-loss segment was acquired for $1.25 billion [6]. Additionally, Blackstone Infrastructure acquired Safe Haven Marinas for $5.6 billion [7], indicating a focus on infrastructure investments.

Technology and healthcare sectors have seen robust M&A activity as well. For example, Salesforce acquired Informatica for $8 billion [8], and Eli Lilly and Company acquired Scorpion Therapeutics for $2.5 billion [9]. These deals suggest a trend towards technology integration and innovation in healthcare.

Private equity firms have continued to play a significant role in the M&A landscape. For instance, KKR acquired a stake in American Electric Power Co for $2.8 billion [10], and TPG Altus Power acquired a $2.2 billion stake in the power sector [11].

In conclusion, the M&A landscape in 2025 is expected to be driven by industrials and banks, with a focus on strategic partnerships and bolt-on acquisitions. Private equity firms are also expected to remain active players in this landscape.

References:
[1] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
[2] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
[3] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
[4] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
[5] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
[6] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
[7] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
[8] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
[9] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
[10] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/
[11] https://intellizence.com/insights/merger-and-acquisition/largest-merger-acquisition-deals/