Global M&A hits USD2.8 trillion in H1 as strategic buyers pursue big-ticket acquisitions, A&O Shearman reports in M&A Insights launch

The global view

• In H1 2026 global M&A values hit USD2.8tn, the highest half-year total since H2 2021. However, deal counts were down 14% compared to H2 2025—a “K-shaped” split driven by the conflict in the Middle East, supply chain disruptions and sticky interest rates. 

Strategic buyers are major drivers of activity, with big-ticket deals including SpaceX's USD250bn acquisition of xAI and Paramount Skydance’s pending USD111bn buyout of Warner Bros. Discovery heavily influencing the headline value figure. Capital is chasing “resilient” assets in defense, renewables, critical minerals and artificial intelligence (AI), while regulatory change continues to shape deal strategy across the U.S., EU and Australia. Here, reforms to antitrust, foreign subsidies, foreign direct investment and tax regimes are affecting deal timing and execution.

Key stats: U.S. and North America

• Values topped USD1.56tn—the highest six-month total in history. Volumes however fell 16.2% to 6,261 transactions compared to the previous half-year period. H1’s deal count was the lowest since the turn of the decade.
• Mega-deals dominated, including SpaceX’s USD250bn acquisition of xAI, Paramount Skydance’s pending USD111bn deal for Warner Bros. Discovery, SpaceX’s USD60bn buyout of Anysphere and Devon Energy’s USD58bn merger with Coterra.
• Discipline is back. We are seeing an uptick in carve-outs of non-core assets by corporates, with financial sponsors increasingly willing to take on the complexity these deals bring.
• Antitrust filing rules remain in flux. While reforms in 2025 to the Hart-Scott-Rodino premerger notification form were struck down by the courts, fresh rules expected in 2028 could bring a broader set of deals into scope for mandatory filing and reshape how parties handle timing, remedies and merger agreement drafting. 

Key stats: Middle East

• Remarkably resilient. Activity totaled USD45.4bn across 516 transactions. Values were broadly flat on H2 2025 despite the U.S.-Iran conflict, with deals paused rather than terminated.
• Sector impacts were selective. Hospitality, tourism, retail and fast-moving consumer goods (FMCG) were the most affected; defense tech and strategic activity held firm.
• The UAE stood out. While M&A value was down 28% to USD16.2bn in H1, this was still the fourth-highest half-year since 2020. Inbound investment was up more than 167% to USD12.3bn.
• Sovereigns provide structural ballast. Sovereign investors’ long-term strategies have seen them continue to deploy into AI and digital infrastructure globally, sustaining regional growth and inbound capital flows.
• Post-conflict pivot ahead. Capital is expected to shift towards strategic intra-regional investment aimed at shoring up domestic resilience, including repairs to damaged oil and gas infrastructure.

Key stats: Asia Pacific

• Values fell 25% to USD433bn, with volumes down 6% to 8,674 transactions. 
• China and Hong Kong dropped. Mainland China values declined 40% to USD133bn; Hong Kong activity was also down sharply at USD10.7bn, 70% lower than in H2 2025.
• Buyer profiles are shifting. Domestic sponsors (PAG, Boyu, Hillhouse) are stepping up as lead or co-underwriters on China deals and also investing cross-border into Southeast Asia. International corporates are increasingly deploying capital to tap into Chinese innovation rather than access its consumer market.
• Japan outperformed. Deal value exceeded USD84bn, up 25%, with a weak yen driving attractive pricing and faster disposals by corporates of non-core assets originally acquired in dollars or euros.
• Australia reached USD48.2bn, a slight increase on H2 2025. Inbound M&A hit USD27.1bn, making it the sixth-most targeted market globally. Critical minerals and defense are in focus; proposed foreign direct investment and capital gains tax changes are set to reshape deal structures.

Key stats: Europe

• Values hit USD661.5bn—the highest half-year total since H2 2021 and 85% of 2025’s full-year figure. This is as volumes fell 17.8% compared to the previous half-year figure. 
• German M&A hit USD111bn in H1, the highest half-year total ever. 
• Distress in Germany's auto sector is drawing interest from foreign investors. Chinese EV makers are eyeing EU manufacturing acquisitions to produce within the EU rather than export from China. 
• In the Netherlands, deal values were down sharply in H1. Corporates acted decisively in pursuit of scale and strategic focus, but private equity (PE) dealmaking declined.
• In Belgium PE investment committees proceeded with caution despite a shortage of assets. Valuation gaps forced bidders to abandon processes, though mid-market software and tech deals stayed resilient.

Key stats: UK

• Values in H1 2026 more than doubled the previous half-year total to hit USD237bn, although volumes fell 22% to 1,303 transactions. Within this number, a blockbuster Q1 gave way to a 36% drop in Q2.
• Strategic acquirers are driving a flight to quality. U.S.-UK public deals remain prominent, with Ingredion's GBP2.7bn takeover of Tate & Lyle a prime example.
• Inbound hit USD202bn—more than double the previous six-month total—on attractive pricing and perceived regulatory stability.
• AI and carve-outs dominate the pipeline. Corporates are buying tech to accelerate transformation while divesting non-core assets. London initial public offerings (IPOs) remain quiet.
• PE leans on alternative exits. Continuation vehicles and secondary buyouts are important routes to liquidity.

M&A Insights delivers concise, partner-led analysis of market drivers, policy shifts and sector opportunities across North America, Europe, the Middle East and Asia Pacific—with practical perspectives on structuring, cross-border execution and regulatory engagement for decision-makers navigating rapid change.