Global M&A state of play

What you need to know

• Resilient dealmaking: Global M&A activity in 2026 showed adaptability as dealmakers found ways to navigate the challenging environment.
• US dominance: The US consolidated its dominance as the primary driver of global M&A, with US acquirers accounting for 54.7% of total deal value in the first half of 2026.
• Sector leaders: Energy and natural resources led global M&A by sector at US$524.8 billion in deal value in the first half of 2026, followed by technology (US$510.5 billion) and industrials (US$460.0 billion).
• Regulatory complexity: Navigating an increasingly complex global regulatory environment has become a defining feature of cross-border M&A execution. Regulators worldwide are also tightening their oversight of digital platforms and technology companies.

Global state of play

Global M&A activity faced headwinds in 2026 from heightened geopolitical uncertainty and market volatility, including the ongoing conflict in the Middle East and shifting trade policies.

In the first half of 2026, there were 21,501 announced deals globally with an aggregate disclosed value of approximately US$3,109.8 billion. This was a 3.7% decline in deal count but a 31.0% increase in aggregate disclosed value compared with the first half of 2025, which recorded 22,331 announced deals and US$2,374.3 billion in disclosed value.

A defining feature of the 2026 market has been the divergence between deal volume and deal value. While the number of announced transactions declined, aggregate disclosed value increased substantially, showing that strategic buyers and financial sponsors remained prepared to pursue transformational opportunities despite geopolitical, regulatory and financing uncertainty.

This “fewer deals, bigger bets” dynamic was visible across markets and sectors, as discussed below.

Global M&A hotspots and deal corridors

The US consolidated its dominance as the primary driver of global M&A, with US acquirers accounting for 54.7% of total deal value in the first half of 2026, up from 44.7% a year earlier. Based on the top 500 global M&A announced deals in the first half of 2026, the US domestic corridor rose to approximately US$801.6 billion from US$626.9 billion in the prior-year period, an increase of approximately 28%. The Canada-to-US and UK-to-US corridors recorded US$25.0 billion and US$10.7 billion, respectively, while the Japan-to-US corridor comprised 4 deals worth US$11.3 billion, underscoring the resilience of established transatlantic and North American deal routes.

Japan was active as both acquirer and target in the first half of 2026. Japanese outbound deal value doubled to US$116.8 billion from US$58.2 billion in the prior-year period, while Japan’s inbound target deal value declined to US$123.9 billion from US$148.8 billion a year earlier.

Australia continued to attract diversified inbound interest, recording target deal value of US$61.6 billion in the first half of 2026, compared with US$71.6 billion in the first half of 2025 and US$59.1 billion in the second half of 2025.

2026's market-defining transactions

Despite this broader market backdrop, a number of landmark transactions were announced in the first half of 2026, highlighting continued appetite for large-scale strategic M&A.

Key transactions included Honeywell International’s US$84.6 billion spin-off of Honeywell Aerospace Inc, one of the largest publicly traded pure-play aerospace and defence suppliers globally; Toyota Motor Corp’s US$22.9 billion repurchase of its own shares from Toyota Industries Corp; and Engie SA’s US$21.4 billion acquisition of UK Power Networks Holdings Ltd. 

The top 5 Global M&A deals in the first half of 2026 were:

Source: Mergermarket

Global M&A sector trends

Energy and natural resources led global M&A activity in the first half of 2026, with a completed deal value of US$524.8 billion. Technology ranked second at US$510.5 billion, down from US$528.8 billion in the prior-year period and US$633.5 billion in the second half of 2025.

Industrials ranked third by completed deal value in the first half of 2026 at US$460.0 billion, up from US$381.8 billion in the prior-year period and US$343.5 billion in the second half of 2025.

Healthcare also demonstrated meaningful growth, rising to US$324.0 billion in the first half of 2026 from US$194.3 billion in the corresponding period of 2025, reflecting sustained strategic and sponsor-led consolidation across the sector.

Global regulatory landscape

Cross-border M&A execution increasingly requires navigating a complex global regulatory environment.

Merger control regimes continue to expand and tighten across key jurisdictions. Australia commenced a new mandatory and suspensory merger clearance regime on 1 January 2026, the UAE adopted executive regulations delivering its first detailed procedural framework for merger control, Vietnam overhauled its merger regime with new notification thresholds and enhanced sanctions for gun-jumping, and Jordan enacted wide-ranging competition law reforms including a formal two-phase merger review process. Singapore has also streamlined its merger review procedures, the Philippines has revised its notification thresholds, and Thailand has proposed significant amendments to bring pre-merger filing obligations and broader enforcement powers into its competition regime.

Regulators worldwide are heightening scrutiny of digital platforms and technology companies. China's State Administration for Market Regulation imposed a CNY 5.2 billion fine on Trip.com for abuse of dominance and conditionally approved Tencent's acquisition of Ximalaya subject to strict behavioural remedies. These developments reinforce the importance of regulatory analysis and early engagement with competition authorities in planning any cross-border transaction.

Private capital and foreign bidders

Private capital and foreign bidders continued to play a prominent role in global M&A. Among the top 500 M&A deals in the first half of 2026, 227 were cross-border transactions, a 20% increase from the prior-year period.

Private equity and financial sponsors featured prominently in key transactions in the first half of 2026, namely CVC Capital Partners’ US$12.3 billion take-private of Recordati, an EQT-led consortium’s proposed US$12.6 billion take-private of Intertek Group alongside ADIA and Mubadala, an Advent International/FedEx consortium’s US$11.7 billion acquisition of InPost and a GIP/EQT-led consortium’s US$38.4 billion acquisition of AES Corp alongside CalPERS and QIA.

Sovereign wealth funds such as ADIA, GIC and Mubadala participated in multiple transactions, often co-investing alongside private equity and infrastructure sponsors.

The focus on execution certainty

In a market characterised by regulatory complexity and macroeconomic volatility, deal certainty has become a competitive differentiator.

While buyers have always been expected to identify merger control, foreign investment and sector-specific approval risks before approaching a target, the emphasis on this has become more significant. Regulatory timetables, potential remedies and the risk of intervention need to be reflected in valuation, transaction documents and financing arrangements from the outset. Timetable implications have also focussed attention on matters including conditions, termination rights, conduct of business provisions and ticking fees.

These considerations are also relevant to competitive processes. Alongside price, bidders will be assessed on the certainty of their financing, their approach to regulatory approvals and their ability to manage any separation or integration issues. For boards and sellers, execution risk is a key factor in evaluating bids.

Structural sophistication

Structuring also remains an important consideration in larger transactions. Corporate carve-outs and portfolio reviews continue to feature as businesses refine their strategic focus, while consortium arrangements allow sponsors, sovereign wealth funds and long-term investors to share risk and assemble the capital required for major transactions. Warranty and indemnity (W&I) insurance, synthetic cover and adjacent insurance products also continue to be used in competitive processes as a tool for allocating risk between the parties.