AI blockbuster deals surge as Middle East conflict tests dealmaker confidence

NEW YORK and LONDON, March 25, 2026 /PRNewswire/ -- A historic wave of megadeals, anchored by OpenAI's USD 110 billion fundraising, powered global M&A in 1Q26, pushing activity to near-record levels. The M&A Highlights 1Q26 report from Mergermarket, an ION service, shows global dealmaking climbing a whopping 22 percent Y-o-Y to USD 1.16 trillion, powered by 17 megadeals, despite renewed geopolitical volatility.

AI remained the strongest catalyst for activity, with landmark funding rounds from OpenAI and Anthropic driving technology to the top of the global league tables and reshaping the composition of early-year deal flow. This acceleration came even as the Middle East conflict introduced a fresh layer of uncertainty, contributing to a "watch-and-wait" sentiment among investors.

Amid this environment, strategic buyers continued to advance essential transactions. Europe stood out with its relative stability, attracting a sharp rise in inbound interest as global investors sought renewed exposure to the region. North America remained the largest and most active M&A hub, while APAC recorded a significant decline in activity.

Key insights from the report

• Global M&A momentum accelerates: Global M&A volume rose 22 percent Y-o-Y to USD 1.16 trillion in YTD26, marking the second-highest YTD total on record. OpenAI's USD 110 billion funding round led the charts, with seven of the top 10 deals involving US-based targets and nine led by strategics. Megadeals valued at USD 10 billion-plus surged to 17 transactions totaling USD 414 billion, the highest YTD tally ever recorded. Technology dominated volumes driven by major AI fundraises from OpenAI, Anthropic, and xAI.
• North America anchors global activity: North America contributed 55 percent of global M&A volume in YTD26, rising 32 percent Y-o-Y to USD 611.1 billion, its second-highest level ever recorded. Five megadeals in February, including OpenAI's fundraise, Anthropic's USD 30 billion round, and the USD 38.3 billion AES take-private, powered early-year momentum. Activity tapered in March amid geopolitical uncertainty. Middle East–to–US investment reached record levels in 2025, though fiscal reprioritization in the region may delay upcoming investments.
• EMEA sees broad-based resurgence: EMEA M&A volume increased 48 percent in YTD26 to USD 334.7 billion, supported by seven megadeals and Engie's USD 21.4 billion acquisition of UK Power Networks. Cross-border investment into Europe surged this year, with inbound deals more than doubling to USD 85.9 billion, an eight-year high. US buyers led major acquisitions, drawn by stability and attractive valuations.
• APAC enters period of reset: APAC M&A volume totaled USD 165.2 billion in YTD26, down 27 percent Y-o-Y as the region recalibrated after a strong prior-year showing. Activity remained influenced by AI-linked infrastructure demand, including data center and energy-related transactions. Dealmakers also adopted a watch‑and‑wait approach as they weighed the impact of the Iran conflict, given the region's heavy reliance on oil imports.
• Private equity adjusts to market conditions: Financial sponsor investment declined 14 percent in YTD26 to USD 143 billion, with the AES deal alone accounting for nearly half the top-10 buyout values. Exit activity fell to USD 112.4 billion, led by Aethon Energy Management's exit of Aethon United. North America saw sponsor investment drop 12 percent and exits fall 50 percent amid aging inventory and extended holding periods. EMEA moved in the opposite direction, with sponsor investment up to USD 39.3 billion and exits reaching an all-time YTD high of USD 41.7 billion.

Lucinda Guthrie, Head of Mergermarket, says, "Dealmaking in 2026 is dominated by blockbuster transactions that are a sign of corporates evolving in a fast-disrupting landscape. The conflict in Iran raises valuation questions for many segments of the deal pipeline in terms of energy prices, financing and supply chain security."

To download the full report, click here.

All data correct as of 23 March 2026.

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About Mergermarket

Mergermarket is the premier provider of global proprietary M&A intelligence, data, and predictive analytics. With access to coverage of 1.4 million companies, almost 3,000 sponsors, and powered by 300 journalists and analysts globally, we bring transformative M&A insight and a competitive edge to capital markets professionals, shaping the future of M&A. For more information, visit https://info.mergermarket.com

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SOURCE ION