ZURICH (Reuters) -Global mergers and acquisitions activity grew 10% in the first nine months of 2025 compared with the same period last year, extending a gradual recovery despite uncertainty over U.S. tariff policies and geopolitical conflict, a study showed on Tuesday.

The Boston Consulting Group Global M&A Report showed the deal volume rose to $1.938 trillion from January to September compared with $1.763 trillion in the same nine months of 2024. 

It marked the second consecutive increase and was the highest total over the period since 2022, when the first nine months' activity was worth $2.17 trillion.

"While headwinds such as geopolitical tensions and changing tariff policies have caused some dealmakers to pause, many others have pressed forward strategically," BCG said.

Still, the sum was more than 40% below the $3.3 trillion registered over the same period in 2021, BCG said.

More than 60% of the 2025 activity involved targets in North America. There, the value jumped by just over a quarter from the same period last year to $1.2 trillion. In Europe, by contrast, M&A deal volumes declined 5% to $375 billion.

All told, $536 billion in M&A activity came from technology, media and telecoms, with financial institutions and real estate making up $357 billion and industrials $280 billion.

Britain remained the biggest M&A market in Europe, although the value of deals there decreased by 35%. It also declined by 58% in Spain and 29% in France, the study showed.

By contrast, the value of activity in the Netherlands surged by 263% and in Switzerland by 109%. Germany was up 45%, Italy 28% and the Nordics 31%, BCG said. The deal value in the Asia-Pacific region fell 19% to a 10-year low of $284 billion.

(Writing by Dave Graham; Editing by Hugh Lawson)