Goldman Sachs' Iain Drayton, Head of Investment Banking for Asia Pacific, anticipates that the current boom in mergers and acquisitions (M&A) across the region will likely extend into 2027. This optimistic outlook is supported by a strong first half of 2026, which saw M&A volumes in Asia Pacific top $750 billion, a 30% increase year-over-year. Drayton noted that the region has experienced a dynamic environment for capital markets and strategic consolidation, with equity capital markets activity reaching $177.1 billion, up 35% year-over-year.
Key drivers for this sustained activity include corporations and financial sponsors capitalizing on structural tailwinds such as governance-led transformation and AI-driven investment. Goldman Sachs' 2026 Global M&A Outlook highlights that nearly 60% of survey respondents cite scale and strategic growth as primary M&A drivers. While AI isn't directly fueling the majority of deals yet, it has created a "halo effect," pushing corporate leaders to scale, adapt, and consolidate, particularly amidst rising activist pressure for portfolio optimization. Mega M&A volumes globally have surged by 125% year-over-year, indicating a significant increase in deal size.
The M&A landscape in Asia Pacific is diverse, with Japan being the busiest market due to policy pushes for increased shareholder returns, a weak yen, and low interest rates. China has shown resilience in M&A, particularly in outbound deals, despite some recent slowdowns due to regulatory uncertainty. Southeast Asia is seeing activity driven by consolidation in fragmented sectors and significant investment in digital infrastructure, including data centers, which are attracting bids for valuations over $30 billion. Drayton emphasized Goldman Sachs' commitment to clients in this evolving landscape, as the firm led multiple transactions and ranked #1 in Asia Pacific equity and equity-linked, as well as announced and completed M&A in 1H 2026.
