South-east Asia M&A deal value drops 16% in 2025, diverging from broader Apac rebound: Bain

[SINGAPORE] The value of merger and acquisition (M&A) deals in South-east Asia fell 16 per cent in 2025 compared with the year before, diverging from a broader recovery in the Asia-Pacific region, based on the Global M&A Report 2026 released by Bain & Company on Tuesday (Jan 27).

While the broader Apac strategic deal market grew 33 per cent in value, South-east Asia’s total deal value – a metric capturing all transactions across corporate, private equity and venture capital activity – dropped to US$61 billion, down from US$73 billion in 2024.

This also stands in contrast to the global market, which the report describes as having a “broad-based rebound” with deal value rising 40 per cent.

“Regulations are easing. The cost of capital is easing. The buyer-seller gap is easing, with valuations rising slightly and sellers perhaps less tied to 2021 peak valuations,” Bain said.

South-east Asia deal value falls, volume stabilises

A driver of the 16 per cent regional decline was the retreat of financial investors. Deal value from this group, which includes private equity and other investment firms, dropped 28 per cent.

Additionally, venture capital deal value, which captures investments in early-stage, high-growth companies, plunged 36 per cent, marking the steepest decline among investor types.

Strategic M&A activity in the region – defined as deals by corporate buyers rather than financial investors – declined 12 per cent from US$57 billion in 2024 to US$50 billion in 2025.

However, deal activity remained steady. The volume of overall deals valued at over US$30 million increased 2 per cent; and the volume of strategic deals valued at more than US$30 million edged higher by 1 per cent, from 189 deals in 2024 to 191 deals in 2025.

Sector performance: energy surge, manufacturing decline

Strategic deal value of advanced manufacturing and services – the largest industry for M&A in the region – decreased 21 per cent year on year. 

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Globally, however, the sector led the rebound, with US$856 billion in deal value.

In contrast, the energy and natural resources sector – the second largest industry in the region – recorded a 13 per cent increase in deal value. 

This regional growth aligns with broader global patterns, where the report noted that oil and gas companies have consolidated to capture scale and integrate value chains.

While domestic deal values fell, South-east Asian companies increased their M&A activity abroad. Outbound strategic deal value rose 18 per cent to US$15 billion in 2025.