Global mergers and acquisitions (M&A) activity hit an all-time high in the first six months of 2021, with deals worth more than US$2.6t, up from US$926b year-on-year and surging past the pre-pandemic five-year average (H1 2015-2019) of US$1.6t, according to new analysis by EY.

More than half of the activity was recorded in North America, which saw deals worth US$1.4t (up from US$345b in H1 2020) – almost double the average seen in the five years prior to the pandemic (US$784b). North America was followed by the Asia-Pacific region, which saw M&A values of US$446b, a jump from US$222b in H1 2020 and an increase from an average of US$317b in H1 2015-2019. Europe follows, recording US$412b, up from US$245b in H1 2020 and exceeding the H1 2015-2019 average of US$356b.

Despite a fall in the total number of deals announced, a spike in billion-dollar deals is the key driver behind activity so far this year according to the analysis, with 479 such deals announced. Despite many parts of the world economy still operating under restrictions, cross-border transactions have also staged an impressive comeback, increasing to US$688b from US$236b in H1 2020 and above the average of US$480 recorded in the five years prior to the COVID-19 pandemic.