According to a new report from GlobalData, global mergers and acquisitions (M&A) in the supply chain industry have accelerated as a result of geopolitical challenges and changing demographics.
The data analytics and consulting company reported a surge in M&A deal activity during 2024, with a 5% increase in total deal value year-over-year (YoY), driven by a steady decline in interest rates and modest economic growth.
"Supply chain resilience was a key theme that drove this momentum, with US$160 billion in supply chain-related transactions across 22 deals, covering sectors like healthcare and industrials," GlobalData said.
Its latest Strategic Intelligence report, "Global M&A Deals in 2024 – Top Themes by Sector – Strategic Intelligence," reveals that in terms of deal volume, there was a 0.3% decrease from 2023 to record 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," said Priya Toppo, analyst, Strategic Intelligence at GlobalData.
"Companies are increasingly prioritizing resilient, localized, 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."
GlobalData said the biggest supply chain deal was Novo Holdings' acquisition of Catalent for US$17 billion. This deal was also the biggest in the industrial sector in 2024.
It was followed by China First Heavy Industries' merger with China Shipbuilding for US$16 billion and Johnson & Johnson's acquisition of Shockwave Medical for US$13 billion.
"An ongoing trend is the dominance of North America in M&A deal activity, accounting for 12,571 deals worth US$1.3 trillion during 2024. However, China, South America, and the Middle East and Africa saw a YoY decline in deal value," Toppo said.
The GlobalData analyst, Strategic Intelligence, said 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," Toppo said.
