LONDON/NEW YORK/HONG KONG, July 1 - Global merger and acquisition activity hit record levels in the first half of 2026 as a cluster of very large transactions dominated deal value, according to LSEG data. Announced deals reached $2.8 trillion in the first six months, a 48% increase from a year earlier and the largest year-to-date total since LSEG began compiling records in 1980.
That headline figure masks a sharper shift beneath the surface: the total number of announced transactions fell 9% to roughly 24,000 so far in 2026, marking a six-year low. The market was led by blockbuster transactions, with 47 deals larger than $10 billion accounting for more than $1.3 trillion of announced value - almost half of global volumes and the strongest opening half-year on record for such mega-deals.
Among the largest transactions were NextEra Energy’s $66.8 billion merger with Dominion Energy and SpaceX’s roughly $60 billion acquisition of Cursor. Bankers and advisers said these and other outsized deals reflect boards and management teams seizing on easier regulatory conditions and plentiful financing to pursue long-held, strategic objectives.
"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 acquire assets they view as necessary to navigate structural change and to position themselves for the future.
Ivan Farman, co-head of Global M&A at Bank of America, noted that momentum at the top end of the market is stronger than at the lower end. He said perceptions have shifted such that a $1 billion to $3 billion deal can take as long to complete as a larger transaction, prompting firms to act decisively when major opportunities emerge. "Long‑held aspirational or dream deals are now being actively rallied around, with CEOs and management teams pushing them forward to their boards," Farman said.
Why scale matters
Bankers surveyed by LSEG and others said investors are placing a premium on scale and strategic focus. Larger companies with more durable competitive advantages are trading at higher multiples than smaller peers, according to Farman, prompting boards to favor transactions that expand moats or sharpen a company's focus.
That environment has encouraged both transformational combinations and a wave of corporate restructurings. Advisers pointed to a record level of separation activity as companies adapt to shifting industry structures - examples include Comcast’s planned spinoff of NBCUniversal, Honeywell’s announced three-way split, and the sale of Unilever Foods to McCormick & Co.
Rothschild & Co’s Akeel Sachak argued that markets now struggle to reward overly diversified conglomerates. "The market is struggling more than ever to embrace businesses that are inordinately diversified," he said. Where diversification once was lauded as a risk-mitigation strategy, investors increasingly view it as creating complexity and diluting management focus.
Policy backdrop and regional drivers
Advisers described a regulatory and policy setting that has, in some jurisdictions, lowered barriers to big deals. European policymakers have floated proposals to revise rules so that larger domestic champions can be created, and bankers said the U.S. administration appears receptive to sizable combinations. In Asia, proposed updates to Japan’s corporate governance code - emphasizing more efficient use of cash - are expected to spur deal activity by cash-rich Japanese corporates.
Jan Weber, head of M&A for Europe, Middle East and Africa at Morgan Stanley, said momentum has accelerated behind the scenes, with a growing pipeline of cross-border strategic deals forming over recent weeks. "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 said.
Ed Wittig, co-head of Asia Pacific M&A at Goldman Sachs, highlighted that companies remain focused on growth, while markets reward those that can deliver synergies and execute transactions effectively.
Financing and sector trends
Acquisition financing was plentiful in the first half. Global investment-grade corporate debt issuance totaled $3.4 trillion, a 10% year-on-year increase and the highest first-half total on LSEG record. That ready availability of debt helped underpin large transactions across sectors.
Technology continued to dominate dealmaking, with $649 billion of announced transactions in the sector during the first six months. Advisers pointed to two thematic drivers within technology: AI and AI-adjacent industries in the U.S., and a complementary set of heavy-asset industries that are less exposed to rapid obsolescence. "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 M&A reached $893 billion in the first half, up 62% from a year earlier and the strongest start to a year since 2018. The United States was the most-targeted country, accounting for 25% of cross-border transactions, followed closely by Britain. Kirshlen Moodley, head of UK M&A for BNP Paribas, noted an increase in outward-looking activity among UK corporates as well.
Outlook and considerations
While some bankers expressed optimism that activity could rival or exceed prior post-pandemic peaks, they emphasized that much of the current wave reflects a confluence of large-company strategic moves, available financing, and a more permissive policy environment in certain markets. The split between a concentration of value in mega-deals and a falling overall deal count highlights a market where boards and management teams are prioritizing scale-enhancing and focused transactions over a higher volume of smaller deals.
Market participants will watch whether the pipeline of large cross-border strategic deals continues to convert into completed transactions and how evolving policy discussions in key jurisdictions influence the pace and shape of M&A activity in the coming months.
Key points
- Announced global M&A value reached $2.8 trillion in H1 2026, up 48% year-on-year, driven by 47 mega-deals above $10 billion that accounted for more than $1.3 trillion of value.
- Deal counts fell about 9% to roughly 24,000 transactions, as boards concentrated on large-scale transformational deals and corporate separations.
- Financing was abundant, with $3.4 trillion of investment-grade corporate debt issued in the first half, and technology remained the largest sector for announced transactions at $649 billion.
Risks and uncertainties
- Policy and regulatory changes in major jurisdictions could alter the feasibility and timing of large cross-border deals, affecting sectors such as technology and heavy industry.
- Execution risk on large, transformative transactions and on complex corporate separations may affect shareholder value if anticipated synergies or focus do not materialize, especially in conglomerates undergoing splits.
- Concentration of deal value in a smaller number of mega-deals leaves the broader market dependent on successful completion of those transactions for overall M&A momentum.