The M&A Market in Italy in 2025
Over €71 billion in total M&A deal value in Italy
Throughout 2025, approximately 1.424 M&A deals were completed in Italy, with an aggregate value of around €71 billion. In a year marked by geopolitical uncertainty, US tariffs, and macroeconomic volatility, dealmaking remained resilient, driven largely by strong domestic transactions and continued private equity interest in aggregation strategies.
Both deal value and volume declined compared with 2024, which had closed with 1,441 transactions and roughly €79 billion in value.
Deal volumes fell by roughly 1%, while total value decreased by about 10%. The average deal value also slightly decreased (approximately €50 million in 2025 vs. €55 million in 2024, a 9% decline).
According to KPMG’s analysis “Il Mercato M&A 2025 e i principali trend”, the Italian M&A market was strongly supported by domestic transactions, particularly driven by consolidation in the banking sector. Domestic dealmaking maintained leadership in terms of volume, supported by supply-chain–driven M&A and new industrial hub creation.
The United States remained the top destination for inbound and outbound cross‑border M&A, despite uncertainties linked to the so‑called “Liberation Day.” Cross‑border deals continued to serve as a strategic tool for companies aiming to reposition themselves and manage tariff‑related challenges.
Key Sectors Driving M&A in 2025
In Italy, the most active sectors in 2025 included:
- Financial Services: 103 deals, totaling €27.2 billion
- Consumer & Industrial Markets: 786 deals, totaling €23 billion
- Energy & Utilities: 117 deals, totaling €13.3 billion.
Average Deal Value Influenced by a Limited Number of Large Transactions
The average value recorded in the first nine months of 2025 was significantly influenced by a small number of billion‑euro transactions, representing roughly 55% of total deal value.
Notable transactions highlighted in KPMG’s report include:
- Monte dei Paschi di Siena’s investment of over €15 billion to acquire a stake in Mediobanca;
- BPER Banca’s takeover of Banca Popolare di Sondrio for €3.8 billion, resulting in ownership of 80.69%;
- Meta Platforms Inc.’s acquisition of a ~3% minority stake in EssilorLuxottica, valued at approximately €3.0 billion;
- The sale of the “Gaming and Digital” division of International Game Technology PLC (De Agostini Group) to Voyager Parent LLC for €3.4 billion;
- Ferrero’s acquisition of US‑based WK Kellogg for €7 billion;
- Italgas’s acquisition of 99.94% of 2i Rete Gas S.p.A. for €2.1 billion.
Add‑ons as a Key Driver of M&A Activity
In 2025, add‑on acquisitions accounted for over half of Italy’s private equity market (54%). A total of 343 add‑ons were completed up 37% compared to 2024—despite the overall slight decline in M&A volume.
Specifically:
- 288 domestic add‑ons
- 55 international add‑
Corporate Finance Glossary
This newsletter also introduces key terms frequently used by advisors and stakeholders in Corporate Finance
Add-On: an acquisition in which a private equity investor purchases a target company with the purpose of merging it into an existing platform company. The goal is to consolidate or strengthen the platform’s market position. Add‑on strategies often involve multiple parallel investments within the same sector to create integrated industrial hubs.
Dealmaking: The strategic process of identifying, negotiating, and closing M&A transactions, typically guided by experienced advisors who help align the interests of buyers and sellers.
Operazioni cross border: M&A transactions involving companies from different countries—crucial for firms seeking geographic expansion, portfolio diversification, or access to new market expertise.
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