In terms of deal value, we note that the aggregate for the first three quarters of 2025 has held up well - totalling almost EUR118bn - especially the first quarter clearly being an outlier, with an announced value of EUR53.5bn. This seems to reflect the continuation buyers, showing strong appetite for scale and stability, a sentiment reinforced by the still-favourable financing conditions following last year's rate cuts.
Sector-wise, the picture remains consistent. With 24% of the announced deals, technology remains the single largest contributor to deal flow, followed by manufacturing & industrials of 16%, services with 15%, real estate with 12%, and consumer markets and pharma, both 8%. Together, these sectors account for over 80% of all activity, highlighting the enduring role of tech-led innovation and industrial consolidation as the backbone of Nordic M&A.
At KPMG Denmark, we recently released our Danish defence sector opportunities-report highlighting that with defence spending set to rise above 3% of GDP and through new initiatives such as the DKK50bn acceleration fund, and Danish pension funds more than doubling their investments in defence over the past year, this segment is evolving rapidly - we look forward to monitoring this development over the near future. Feel free to reach out if you want a copy of our full Danish defence sector report.
Looking ahead, it will be interesting to see whether the current level of activity can be sustained as we enter the final quarter of the year and going into 2026 - we do expect deal activity to remain robust, supported by several tailwinds: private equity funds continuing to sit on significant dry powder, inflation having stabilized at lower levels; and corporate buyers remaining focused on transformational deals. Importantly, Denmark still has a large cohort of private equity-backend companies with extended holding periods, which is likely to drive a steady flow of exits in the months ahead.
In summary, the Nordic market shows few signs of slowing. On the contrary, the region's combination of innovation-driven companies, financial strength, and relative macroeconomic stability suggests that M&A activity could well sustain its momentum into the new year.
