With $355.7 billion in total transactions in 1995 involving U.S. companies, mergers and acquisitions activity broke 1988's record transaction value of $246.9 billion.
Banking transactions accounted for five of the 15 largest announced deals during the year, according to Houlihan Lokey Howard & Zukin's Mergerstat Review.
In banking and finance, 330 deals accounted for $73.4 billion, or 20.6%, of the overall transaction value.
The number of billion dollar-plus transactions increased to 75 in 1995 from 47 in 1994. The average deal size also increased sharply - it vaulted to $2.9 billion in 1995 from $2.2 billion in 1994.
The number of deals also increased to 3,521 in 1995 compared with 2,958 in 1994.
The largest announced deal was Walt Disney Co.'s $19 billion bid for Capital Cities/ABC Inc.
The next two deals were both banking deals: First Bank System's $10.3 billion counter offer to Wells Fargo Bank's unsolicited bid for First Interstate Bancorp and Chemical Bank's proposed $10 billion acquisition of Chase Manhattan Bank.