Supply chain drives M&A activity to record 5%YoY growth in 2024

Supply chain-related transactions accounted for $160b.

Global mergers and acquisitions (M&A) activity experienced a significant surge in 2024, achieving a 5% increase in total deal value compared to the previous year, supported by a steady decline in interest rates and modest economic growth. 

In a strategic intelligence report, GlobalData said supply chain resilience contributed to this momentum, accounting for $160b in related transactions across 22 deals across sectors, such as healthcare and industrials.

GlobalData reveals that total deal volume decreased by 0.3% from 2023, reaching a total of 31,952 deals in 2024.

“Rising geopolitical tensions, shifting demographics, heightened ESG regulations, ongoing labor shortages, and accelerated digital transformation have further intensified the focus on supply chain-related M&A deals," Priya Toppo, Strategic Intelligence analyst at GlobalData, said. 

"Companies are increasingly prioritising resilient, localised, and technology-driven supply chains to mitigate risks and enhance operational efficiency. This was especially true in the healthcare, industrials, energy, and real estate sectors.”

The largest supply chain transaction was Novo Holdings' acquisition of Catalent for $17b, marking it as the biggest deal in the industrial sector for 2024.

This was followed by China First Heavy Industries’ merger with China Shipbuilding valued at $16b and Johnson & Johnson's acquisition of Shockwave Medical for $13b.

“An ongoing trend is the dominance of North America in M&A deal activity, accounting for 12,571 deals worth $1.3t during 2024. However, China, South America, and the Middle East and Africa saw a YoY decline in deal value,” Toppo added. 

"The M&A outlook for 2025 is cautiously optimistic, as potential rate cuts in certain markets and an improving global economic environment could drive deal activity. However, mega-deals may continue to face challenges, particularly in the US, where antitrust scrutiny remains a key focus for regulators.”