Animal Hibernation: Global Deal Trends Shift Amid Economic and Regulatory Hurdles
Global M&A activity grew 15% in Q1 2025 while U.S. deals declined 14%, highlighted by Brookfield’s $9 billion acquisition of Colonial Pipeline amid broader economic and regulatory uncertainties.
Published on April 5, 2025
On April 4, 2025, Axios Pro Rata reported that while global M&A activity surged 15% in Q1, U.S. deals declined by 14%, even as large mergers gained momentum late in the quarter. Concerns over potential trade tensions have sparked worries about long-term investment prospects, with some observers describing the mood as a move from "animal spirits" to "animal hibernation."
Brookfield Infrastructure Partners made headlines with its $9 billion acquisition of Colonial Pipeline, underscoring the value of scarce midstream assets amid regulatory and tariff challenges. The deal, which includes the extensive pipeline network from Houston to New York, comes amid a flurry of activity in venture capital and private equity, as well as mixed economic signals such as 228,000 new U.S. jobs in March paired with a rise in the unemployment rate to 4.2%.