Global M&A activity has reached unprecedented heights, hitting a staggering $2.8 trillion in the first half of 2026, according to LSEG data. This surge can largely be attributed to a notable increase in mega-deals valued at over $10 billion, as companies capitalise on a more favourable regulatory environment to secure significant transactions.
Global m: Unprecedented Financial Figures
The total value of announced mergers and acquisitions soared 48 per cent compared to the same period last year, marking the highest year-to-date total since LSEG began tracking these figures in 1980. Interestingly, the number of deals announced has decreased by 9 per cent, totalling around 24,000, which represents a six-year low.
Dominance of Mega-deals
Blockbuster transactions were a defining feature of this period, with 47 deals exceeding $10 billion, amounting to over $1.3 trillion and accounting for nearly half of global M&A volumes. This trend signifies the strongest first half on record for mega-deals. Notable examples include NextEra Energy’s merger with Dominion Energy valued at $66.8 billion and SpaceX’s acquisition of Cursor for approximately $60 billion.
Resilience Amidst Economic Challenges
Jay Hofmann, JPMorgan’s North America co-head of mergers and acquisitions, commented on the current climate, stating, “Corporates have shown tremendous resilience in the face of geopolitical, monetary, macroeconomic, and even microeconomic volatility.” He emphasised that the availability of substantial financing has empowered companies to pursue essential assets that position them favourably for future challenges.
Strategic Focus on Larger Transactions
Ivan Farman, co-head of Global M&A at Bank of America, highlighted a shift in corporate strategy, noting that strong momentum exists at the high end of the market. He remarked, “A $1 billion to $3 billion deal takes just as much time as a larger one, so when an opportunity for a big transaction arises, companies see this as the moment to act.” This sentiment reflects a broader trend where investors are prioritising scale and focus in their portfolios.
Investor Preferences Shift Towards Scale
Farman further elaborated that larger companies, which possess significant competitive advantages, are trading at higher multiples than their smaller counterparts. He explained, “Long-held aspirational or dream deals are now being actively rallied around, with CEOs and management teams pushing them forward to their boards.” This indicates a collective eagerness among corporate leaders to seize major opportunities despite the prevailing economic uncertainties.
Encouraging Signs for Future Activity
Despite the geopolitical turmoil, some dealmakers are optimistic that M&A activity could surpass the post-pandemic peak of 2021. With fewer regulatory hurdles currently in place, companies are poised to take advantage of this environment. European policymakers are considering reforms aimed at fostering local champions, while the Trump administration appears open to large-scale US mergers.
Revitalised Interest in Cross-border Transactions
In Asia, Japanese corporations, buoyed by cash reserves, are anticipated to engage in more deals, driven by proposed changes to the country’s governance code that encourages efficient cash usage. Jan Weber, head of mergers and acquisitions for Morgan Stanley in Europe, the Middle East, and Africa, noted, “Momentum has actually started to accelerate behind the scenes over the last six weeks with a growing pipeline of cross-border, strategic deals.” He feels that numerous indicators point towards a robust future for M&A.
Focus on Growth through Strategic Mergers
Ed Wittig, co-head of Asia Pacific mergers and acquisitions at Goldman Sachs, observed a strong enthusiasm for synergies in the current climate. He stated, “There’s strong enthusiasm around synergies, and markets are rewarding those that execute well.” This indicates that companies are increasingly focused on growth through strategic mergers and acquisitions.
Corporate Separation as a Catalyst for Activity
Bankers have also reported a significant uptick in corporate separation activity, as firms adapt to evolving industry dynamics. Notable examples include Comcast’s planned spinoff of NBCUniversal, Honeywell’s three-way split, and Unilever’s sale of its Foods division to McCormick & Co.
Investor Sentiment on Diversification
Akeel Sachak, global head of consumer at Rothschild & Co, remarked on the changing investor sentiment regarding diversification. He noted, “The market is struggling more than ever to embrace businesses that are inordinately diversified. Investors are more cautious because it creates undue complexity and a lack of focus from management.” This shift in perspective is prompting companies to reassess their structures in pursuit of clarity and focus.
Technology Continues to Lead the Charge
In terms of sector performance, technology remained the dominant force in global dealmaking, with $649 billion in announced transactions during the first half of 2026. Sam Newhouse, global vice chair of Latham & Watkins’ M&A and Private Equity Practice, explained, “AI or AI adjacent industries are one half of the equation, particularly in the US. The other half is the HALO side, heavy assets, low obsolescence, big infrastructure and big industry that will continue no matter what impact AI has.” This highlights the dual focus on both technological advancement and traditional industries.
Cross-border M&A Flourishes
The cross-border M&A landscape saw significant growth, reaching $893 billion in the first half of 2026, a remarkable 62 per cent increase from the previous year. The US emerged as the most targeted nation, representing 25 per cent of cross-border transactions, closely followed by the UK. Kirshlen Moodley, head of UK M&A for BNP Paribas, pointed out that there is a growing trend of UK corporates looking beyond their borders for opportunities.
