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The sluggish U.S. mergers and acquisitions (M&A) market in the first half of the year is showing signs of renewed activity this summer, the Wall Street Journal (WSJ) reported on the 3rd (local time).

According to data from market research firm LSEG, cited by the WSJ, the value of M&A deals announced last week reached its highest level since 2021.

A prime example is the announcement on the 29th of last month that U.S. railway company Union Pacific will acquire Norfolk Southern, a railway company in the eastern U.S., for $71.5 billion (approximately 99 trillion won). This acquisition amount is the largest announced M&A deal this year.

Cybersecurity firm Palo Alto Networks also announced last week its acquisition of Israeli cybersecurity firm CyberArk for $25 billion, and U.S. oil drilling giant Baker Hughes has agreed to acquire liquefied natural gas (LNG) equipment maker Chart Industries for $13 billion.

While final results have not yet been announced, other large M&A deals are also on the horizon. Food company Kraft Heinz is considering spinning off its grocery division, and French luxury conglomerate LVMH is discussing the sale of its luxury brand Marc Jacobs.

The WSJ analyzed that the "surprise merger" of Union Pacific and Norfolk Southern could trigger further M&A activity among major players in the U.S. railway industry.

Tony Kim, co-CEO of M&A advisory firm CenterView Partners, told the WSJ that while there are uncertainties that make it difficult to finalize negotiations for large deals, "it is clearly positive that we are seeing more deals being closed despite these circumstances."

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