Blockbuster transactions drive record deal values
A wave of multibillion-dollar acquisitions pushed global mergers and acquisitions activity to unprecedented levels during the first half of 2026, as companies capitalised on a more favourable regulatory environment to pursue long-term strategic transactions.
According to LSEG data, the total value of announced M&A deals reached $2.8 trillion during the first six months of the year, representing a 48% increase from the same period in 2025 and the highest year-to-date figure since records began in 1980.
Despite the surge in value, overall deal volumes declined. Around 24,000 transactions were announced during the period, down 9% year over year and marking the lowest first-half total in six years.
Mega-deals dominate global activity
Large-scale transactions were the defining feature of the market.
LSEG data showed 47 deals valued at more than $10 billion were announced during the first half, with a combined value exceeding $1.3 trillion. Those transactions accounted for almost half of all global M&A value, setting a new record for the proportion represented by mega-deals.
Among the largest transactions were NextEra Energy’s (NYSE:NEE) $66.8 billion merger with Dominion Energy (NYSE:D) and SpaceX’s (NASDAQ:SPCX) acquisition of Cursor for approximately $60 billion.
“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,” allowing companies to acquire strategic assets needed “to navigate change and put themselves in the best position for the future”.
Boards increasingly favour transformational deals
Investment bankers said corporate boards are becoming more willing to pursue ambitious acquisitions rather than smaller transactions.
Ivan Farman, co-head of Global M&A at Bank of America, said stronger activity at the top end of the market reflects a growing belief that the effort required to execute a mid-sized acquisition is often comparable to completing a much larger deal.
“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 advisers, investors are increasingly rewarding companies with greater scale, stronger competitive positions and more focused business models.
“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 changes encourage dealmaking
Many advisers believe M&A activity could eventually surpass the record levels seen following the pandemic in 2021, supported by a more accommodating regulatory backdrop.
In Europe, policymakers have proposed reforms aimed at making it easier to create larger regional champions, while bankers believe the Trump administration has shown greater openness toward major US corporate combinations.
Japan is also expected to contribute to higher deal activity as proposed revisions to corporate governance rules encourage companies to deploy excess cash more efficiently.
“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 companies remain focused on expansion opportunities.
“There’s strong enthusiasm around synergies, and markets are rewarding those that execute well,” he said.
Corporate breakups become another major trend
Alongside acquisitions, bankers highlighted record levels of corporate separation activity as companies simplify their structures and sharpen strategic focus.
Recent examples include Comcast’s (NASDAQ:CMCSA) planned spin-off 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 continues to lead global dealmaking
Strong financing conditions continued to support acquisitions throughout the first half of the year.
Global investment-grade corporate debt issuance reached $3.4 trillion, up 10% from a year earlier and the highest year-to-date total on record, according to LSEG.
Technology remained the largest sector for mergers and acquisitions, accounting for $649 billion in announced transactions during the first six months of 2026.
“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 acquisitions gather momentum
International dealmaking also accelerated significantly during the first half of the year.
Cross-border M&A reached $893 billion, a 62% increase compared with the same period in 2025 and the strongest start to a year since 2018.
The United States remained the most popular destination for overseas buyers, accounting for one-quarter of all cross-border transactions, with the United Kingdom ranking 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.