Deal values surge despite fewer transactions
Global mergers and acquisitions activity posted a record-breaking first half of 2026, fuelled by a wave of transformational mega-deals as companies took advantage of improved regulatory conditions and readily available financing to pursue long-term strategic growth.
LSEG data showed announced transactions totalled $2.8 trillion during the first six months of the year, up 48% from the same period in 2025 and the strongest year-to-date performance since records began in 1980.
While deal values climbed sharply, overall activity slowed. Approximately 24,000 transactions were announced during the period, down 9% year over year and marking the weakest first-half deal count in six years.
Large transactions dominate the market
The M&A market was overwhelmingly driven by blockbuster acquisitions.
According to LSEG, 47 deals valued above $10 billion were announced during the first half, representing more than $1.3 trillion in combined value. Those transactions accounted for nearly half of total global M&A value, setting a new record for the contribution made by mega-deals.
Notable transactions included NextEra Energy’s (NYSE:NEE) $66.8 billion acquisition of Dominion Energy (NYSE:D) and SpaceX’s (NASDAQ:SPCX) approximately $60 billion acquisition of Cursor.
“Corporates have shown tremendous resilience in the face of geopolitical, monetary, macroeconomic, and even microeconomic volatility,” said Jay Hofmann, JPMorgan’s North America co-head of mergers and acquisitions.
He added that financing “is available in size,” enabling companies to secure strategic assets that will help them “to navigate change and put themselves in the best position for the future.”
Companies prioritise scale and strategic growth
Advisers say corporate executives are increasingly focused on pursuing transformational acquisitions rather than smaller transactions.
Ivan Farman, co-head of Global M&A at Bank of America, said companies recognise that completing a $1 billion transaction often requires a similar level of effort as negotiating a much larger acquisition.
“Reflects a growing view that 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.”
According to bankers, investors continue rewarding businesses that expand their competitive advantages through greater scale and strategic focus.
“Bigger companies that have bigger moats and a bigger competitive advantage are trading at much better multiples than smaller companies,” Farman said.
“Long held aspirational or dream deals are now being actively rallied around, with CEOs and management teams pushing them forward to their boards.”
Regulatory shifts encourage confidence
Many dealmakers believe global M&A activity could eventually exceed the post-pandemic boom recorded in 2021 as governments become more receptive to major corporate combinations.
European policymakers are considering reforms designed to encourage the creation of regional industrial champions, while investment bankers believe the Trump administration is more willing to approve large-scale mergers in the United States.
Meanwhile, proposed changes to Japan’s corporate governance code are expected to encourage cash-rich companies to deploy capital more aggressively through acquisitions.
“Momentum has actually started to accelerate behind the scenes over the last six weeks with a growing pipeline of cross-border, strategic deals,” said Jan Weber, Morgan Stanley’s head of mergers and acquisitions for Europe, the Middle East and Africa.
“It feels like a lot of the indicators are on green for more M&A and boards feel that they need to act. I do think we are working towards the next peak,” Weber added.
Ed Wittig, Goldman Sachs’ co-head of Asia Pacific mergers and acquisitions, said businesses remain focused on expanding through strategic combinations.
“There’s strong enthusiasm around synergies, and markets are rewarding those that execute well,” he said.
Corporate breakups gain momentum
Restructuring activity has also accelerated as companies streamline operations and sharpen their strategic focus.
Among the most significant announcements were Comcast’s (NASDAQ:CMCSA) planned separation of NBCUniversal, Honeywell’s (NASDAQ:HON) proposed three-way split and the sale of Unilever Foods to McCormick & Co (NYSE:MCK).
“The market is struggling more than ever to embrace businesses that are inordinately diversified,” said Akeel Sachak, global head of consumer at Rothschild & Co.
“There was an era where diversity was applauded as a way of mitigating risk, but nowadays investors are more cautious because it creates undue complexity and a lack of focus from management.”
Technology remains the centre of dealmaking
Robust financing conditions continued supporting acquisition activity throughout the first half of the year.
Global issuance of investment-grade corporate debt reached $3.4 trillion, up 10% year over year and the highest first-half total ever recorded by LSEG.
Technology remained the largest sector for mergers and acquisitions, generating $649 billion in announced transactions.
“AI or AI adjacent industries are one half of the equation, particularly in the U.S. 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,” said Sam Newhouse, global vice chair of Latham & Watkins’ M&A and Private Equity Practice.
Cross-border activity continues to strengthen
International dealmaking also recorded its strongest opening to a year since 2018.
Cross-border transactions totalled $893 billion during the first half of 2026, representing a 62% increase from a year earlier.
The United States remained the leading destination for overseas acquirers, accounting for around 25% of all cross-border transactions, while the United Kingdom ranked second.
“There are a lot more UK corporates looking outward as well rather than just the UK being taken out,” said Kirshlen Moodley, head of UK M&A for BNP Paribas.
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