Key takeaways 

• Big M&A transactions continue to dominate the M&A landscape even though the volume of deals declined in the second quarter.
• The Union Pacific-Norfolk Southern deal would create a coast-to-coast rail network and be the biggest U.S. merger in three years, if approved.
• Major July deals by Palo Alto Networks, CoreWeave, and Baker Hughes highlight AI cybersecurity and infrastructure.

Some see the trend continuing as more companies become accustomed to an M&A landscape that has seen constant change in recent years.

Union Pacific’s recent $85 billion bid for Norfolk Southern could be the largest rail merger in U.S. history and signals that big-ticket M&A deals are back in motion after a choppy start to 2025.¹

Overall deal volume in the U.S. actually fell 5% in the second quarter of 2025, as many companies grappled with economic uncertainty and shifting tariff policies, according to EY. But total deal values rose 6.4% compared to the first quarter. That was driven by big transactions, including 12 deals above the $10 billion mark that totaled $198 billion.²

That trend appears to be accelerating with three big deals in the last week of July alone. Palo Alto Networks said July 30 that it will buy identity security provider CyberArk in a $25 billion deal.³ Baker Hughes on July 29 unveiled a $13.6 billion acquisition of industrial gas equipment maker Chart Industries — the same day as the railway deal.⁴

If approved by regulators, the Union Pacific-Norfolk Southern deal would be the biggest U.S. merger in three years and a possible game changer for freight logistics.⁵ It aims to combine 50,000 route miles of track into the first coast-to-coast rail network, potentially reducing supply chain snarls with fewer cargoes having to switch trains or transfer to truckloads.⁶

It isn’t the first big deal to shake up a sector this year. Charter Communications’ $34.5 billion announced merger with Cox Communications in May would create one of the largest U.S. TV and internet providers.⁷

Read more: M&A roundup: Beauty and the billion-dollar buys

AI data, infrastructure plays 

The Palo Alto purchase of CyberArk is the second blockbuster cybersecurity deal of the year. In March, Google parent Alphabet bought AI and cloud cybersecurity startup Wiz for $32 billion — it’s most expensive acquisition to date.⁸

As AI has grown in use, cybersecurity tools have become more critical to protecting businesses and consumers from rising cyberattacks and ransomware that also use the technology.  Three in five Americans (59%) have strong concerns about data privacy and security when using AI, according to Empower research.

The technology sector has seen a significant amount of M&A activity throughout the year, fueled by AI investments, including data centers, infrastructure, and other physical assets.⁹

AI cloud company CoreWeave announced a $9 billion deal for data center operator Core Scientific on July 9. The deal gives CoreWeave control of 1.3 gigawatts of data center power — a gigawatt can power 750,000 homes — to meet growing demand for AI computing power.¹⁰

The Baker Hughes acquisition of Chart Industries also gets in on the AI boom. While known for its work in liquefied natural gas, Chart Industries also has a growing role in the tech world by supplying cooling systems and other equipment to AI data centers.¹¹

Read more: Earnings update: Tech companies stay firm on massive AI spend

Healthcare, life sciences heat up in July 

Healthcare has also seen some big deals this summer. Pharmaceutical giant Merck acquired Verona, a company focused on respiratory diseases, for $10 billion on July 9.¹² That followed Sanofi’s June 2 purchase of Blueprint Medicines, which treats rare immune and blood disorders, for $9.5 billion.¹³

The two recent deals are some of the biggest in healthcare since January, when Johnson & Johnson struck a $14.6 billion purchase of Intra-Cellular Therapies, a biopharma company specializing in central nervous system disorders.¹⁴

July also delivered a major life sciences deal with Waters Corporation’s $17.5 billion acquisition of Becton Dickinson’s biosciences and diagnostic solutions unit. The combined company will have expanded reach in high-end lab instruments and other areas like molecular diagnostics and infectious disease monitoring, as well as food and environmental testing.¹⁵

Read more: Healthcare is the job market’s latest bright spot

More big deals ahead in 2025? 

The top sectors for deals have been technology, infrastructure and industrial products, while activity has been more selective in some other sectors.¹⁶

One standout food industry deal this summer has been Italian candymaker Ferrero Group’s $3.1 billion purchase of cereal giant WK Kellogg Co. The July 10 deal combines the maker of fine chocolates and Nutella spreads with iconic breakfast cereals like Corn Flakes, Froot Loops, and Rice Krispies.17

For companies, uncertainty is becoming a more common fixture in the M&A landscape after several years of near-constant change, according to PwC’s mid-year M&A outlook. The pandemic initially froze dealmaking, followed by a sharp rebound, and then more caution due to economic and trade policy concerns.¹⁸

Some analysts see the big deal trend continuing for the second half of 2025 as some companies become more comfortable with the current economic environment. The summer months have traditionally been a quiet period for M&A activity — but not so far this year.¹⁹