Global M&A momentum slows in 3Q26 after record-chasing first half

NEW YORK and LONDON, Oct. 1, 2026 /PRNewswire/ -- Global M&A neared record levels in the first nine months of 2026, reaching USD 4.44tn. This is despite a slowdown in momentum in 3Q26, as geopolitical tensions and macroeconomic uncertainties weighed on activity. More than 72 percent of total deal volume came in 1H26, according to the 9M26 M&A Highlights report from Mergermarket, an ION service.

North America remained the largest M&A market, accounting for 53 percent of global deal volume. Meanwhile, EMEA recorded its strongest year-to-date performance since 2007, reaching USD 1.15tn, supported by robust large-cap activity as the continent continues its drive to create "European champions" and strengthen supply chains.

Technology remained a major driver of global M&A, topping the rankings for the eleventh consecutive quarter as the flow of capital continued to move beyond software and into other areas such as AI and robotics. The sector recorded a total USD 1.1tn in deal volume across 7,987 deals, a 36 percent rise compared to 9M25, with four of the top 10 deals in 9M26 involving tech targets.

Key insights from the report

• Global M&A nears record highs: Global deal volume rose 27 percent year-on-year to USD 4.44tn across 32,419 deals, making 9M26 the second strongest first nine months on record, after the USD 4.55tn peak in 9M21. Six of the top 10 transactions were announced in 2Q26, with four in May alone, while June recorded the highest deal volume on record, with USD 678.1bn.
• North America remains dominant: The region accounted for 53 percent of global deal volume, with 10,230 transactions worth USD 2.37tn, up 33 percent year-on-year and the strongest 9M total on record. Momentum slowed sharply in 3Q26, with deal volumes dropping 23 percent to USD 560.4bn compared to the same period last year, their lowest since 2Q25 (USD 523.7bn). The number of megadeals also fell to six in 3Q, from 19 in 2Q and 12 in 1Q.
• EMEA shifts towards large-cap deals: EMEA accounted for 26 percent of global deal volume, rising 51 percent year-on-year to its strongest year-to-date level since 2007. Mid-cap activity remained comparable with 9M25, however large-cap deal volume rose 91 percent in volume and deal count increased 22 percent. The region has recorded 18 megadeals, worth USD 368.7bn, the highest number for the period on record.
• APAC fails to rebound: Deal volume fell 5 percent to USD 817.4bn across 8,227 transactions, continuing the decline seen in 1H26. APAC activity saw a regional rotation with surges in deal volume in Australasia of 105 percent and 112 percent in South East Asia, while China and Japan saw declines of 24 percent and 39 percent respectively. Technology saw the largest proportion of deal volume, up 33 percent year-on-year, while APAC was the most active region for data center dealmaking this year.
• Private equity investments ease as exits rise: Global financial sponsor investment fell 11 percent year-on-year to USD 584.2bn, as investors became more selective and higher costs weighed on fundraising. Europe bucked this trend, posting an 18 percent rise in investment activity, with an average deal value of USD 950m, the highest on Mergermarket record. Global exit volume rose 12 percent year-on-year to USD 605.3bn, and Europe led the way with a 30 percent increase and an average deal value of USD 1.4bn.

Lucinda Guthrie, Head of Mergermarket, says: "Scale, resilience and strengthening regional alliances have driven mega-cap deals so far in 2026 and we are still seeing a good flow of processes coming into the market after the August slowdown in activity. The question is whether uncertainty around growth, geopolitics and financing conditions will prevent deals being closed as we go into 4Q, or if confidence returns quickly enough to sustain the momentum seen in the first half of 2026."

To download the full report, click here.

All data correct as of 29 September 2026.

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SOURCE ION