Global M&A volume hit a record $3.2 trillion in the first half of 2026, marking a 44% year-over-year increase. This robust activity, detailed in JPMorgan's mid-year outlook, included a record 48 mega-deals (transactions over $10 billion) totaling $1.3 trillion. Cross-border volume also surged by 63% to $820 billion, reaching a two-decade high. Technology and Diversified Industries accounted for 50% of overall volume and mega-deal volume, largely driven by AI-related investments.
The first half of 2026 experienced a complex environment with AI-driven disruption, redemption stress in private credit, and geopolitical tensions. Despite these challenges, dealmakers focused on long-term strategic objectives, leading to a quick rebound after a brief pause in March. Boards are increasingly prioritizing reinvestment over capital returns, using M&A to build scale and competitive advantage, a shift that is being rewarded by public markets.
Notably, there's a strong pivot towards larger, transformative deals, with mega-deal volume growing 114% year-over-year to $1.3 trillion. AI-linked stake sales and funding rounds played a significant role, contributing $370 billion, with six mega-funding rounds accounting for approximately 40% of minority investment volume. Divestiture activity reached $1.4 trillion globally, up 7% year-over-year, as companies reposition and recycle capital into priority areas like AI-linked capital expenditures.
Looking ahead, Goldman Sachs's Tim Ingrassia also expressed optimism, suggesting that 2026 could be a record year for M&A, with deal flow potentially rising to $3.9 trillion. This positive outlook is supported by resilient capital markets, decreasing volatility, and a constructive deal pipeline, indicating ample opportunities for continued strong dealmaking through the second half of the year.
North America led regional activity, contributing over half of the global volume, while EMEA showed resilience in consolidation and cross-border interest. APAC, however, was more subdued. The market has seen increased bifurcation, with large-cap dealmaking accelerating, particularly in AI, utilities, and financial services, while the middle market rebound has been slower due to valuation gaps and geopolitical uncertainties. Sponsor volume remained flat year-over-year at $730 billion, but activity concentrated in larger transactions, reflecting a strategic deployment of capital into fewer, more targeted deals.
