Global M&A volumes topped $5 trillion for the first time ever, as per the data showed by Dealogic Data. Global M&A comfortably jumps up its previous record of $4.55 trillion set in 2007.

According to Refinitiv, the overall value of M&A stood at $5.8 trillion in 2021, up 64% from a year earlier.

Investment bankers said they are expecting the dealmaking frenzy to continue well into next year, despite looming interest rate hikes.

The United States led the way for M&A, accounting for nearly half of global volumes. Despite a tougher antitrust environment under the Biden administration, the value of M&A nearly doubled to $2.5 trillion in 2021.

The largest deals of the year included AT&T Inc's $43 billion deal to merge its media businesses with Discovery Inc; the $34 billion leveraged buyout of Medline Industries Inc; Canadian Pacific Railway's $31 billion takeover of Kansas City Southern; and the breakups of American corporate behemoths General Electric Co and Johnson & Johnson.

Deals in sector such as technology, financials, industrials, and energy and power accounted for the bulk of M&A volumes.

According to Refinitiv data, buyouts backed by private-equity firms more than doubled this year to cross the $1 trillion mark for the first time ever.

Despite a slowdown in activity in the second half, dealmaking involving special purpose acquisition companies further boosted M&A volumes in 2021. SPAC deals accounted for about 10% of the global M&A volumes and added several billions of dollars to the overall tally.

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