Global M&A update: A record-breaking market that's becoming increasingly concentrated

Global M&A activity has continued its impressive trajectory through the first seven months of 2026, with announced deal value reaching US$3.19 trillion, up 36% year-on-year and within touching distance of the January-to-July record set in 2021. While July saw a moderation in activity following the exceptional volumes recorded in May and June, the broader trend remains intact: confidence has returned to boardrooms and strategic deal making is firmly back on the agenda.

However, as highlighted in LSEG's recent The State of Global M&A: H1 2026 report, the recovery is not as broad-based as the headline figures might suggest. Instead, M&A is becoming increasingly concentrated across deal sizes, sectors and geographies, creating a market where growth is being driven by a relatively small number of transactions and participants.

One of the defining themes of 2026 has been the growing gap between deal value and deal volume.

Worldwide, more than 28,000 transactions were announced between January and July, down 10% compared with the same period last year. Yet deal value surged to US$3.19 trillion, underscoring the extent to which larger transactions are driving activity. 

This echoes a key conclusion from LSEG's H1 report: almost every additional dollar flowing into M&A is being concentrated in progressively fewer transactions. During the first seven months of the year, 48 mega deals valued at more than US$10 billion were announced globally, accounting for US$1.29 trillion, or approximately 40% of all M&A activity. That already exceeds the number of mega deals announced during the same period in 2025 and represents the highest January-to-July total on record.

The trend suggests a market increasingly dominated by companies with the scale, balance-sheet strength and strategic conviction to pursue transformational acquisitions, while activity in the broader mid-market remains comparatively subdued. As discussed in the H1 report, M&A increasingly resembles a "power-law market", where a small number of deals account for a disproportionate share of overall value.

The concentration story is equally evident at a regional level.

The Americas continue to lead global deal making, reaching a record US$1.84 trillion in announced activity through July, up 51% year-on-year. The US alone accounted for US$1.69 trillion of M&A activity, marking the strongest opening seven months ever recorded for US targets.

Europe has also emerged as a standout performer. Announced M&A involving European targets reached US$773 billion, up 78% from a year earlier and the highest January-to-July total in nearly two decades. The UK has been a major contributor, accounting for 35% of all European activity.

By contrast, Asia-Pacific remains comparatively subdued. Regional M&A declined 8% year-on-year despite an increase in deal count, while Japan recorded a 43% decline in announced value. These findings reinforce the H1 report's conclusion that the recovery is increasingly concentrated in the world's largest developed economies, with the US and Europe accounting for the vast majority of global market expansion. 

Cross-border M&A further illustrates this dynamic. Activity reached US$1.05 trillion during the first seven months of 2026, the highest January-to-July total since 2007. Yet much of that growth continues to centre on developed Western markets, particularly the US and UK, which together account for nearly half of all cross-border target activity.

Technology remains the largest M&A sector globally, accounting for 23% of all announced activity in 2026. Industrials and Energy & Power follow closely behind, reflecting another major theme identified in the H1 report: AI's influence now extends far beyond the technology sector itself. 

AI is increasingly shaping capital allocation decisions across industries, influencing acquisitions involving infrastructure, energy generation, industrial capacity and digital connectivity. The race to build and support AI ecosystems is no longer confined to technology companies alone. 

This broader investment theme helps explain why sectors such as Energy & Power and Industrials continue to attract significant strategic interest. Corporate leaders are increasingly evaluating acquisitions through the lens of long-term infrastructure needs, capability building and competitive positioning in an AI-driven economy. 

The outlook for deal making remains constructive. Companies continue to benefit from improving financing conditions, growing confidence and clear strategic imperatives to deploy capital. However, the most important takeaway from the market's performance so far this year may be that recovery does not necessarily mean participation is broadening.

As LSEG's The State of Global M&A: H1 2026 report highlighted, concentration is becoming one of the defining characteristics of today's M&A landscape, extending across deal sizes, sectors, geographies and even advisory mandates. 

The latest July data suggests that trend remains firmly intact.

Global M&A is experiencing one of its strongest years on record, but the capital driving that growth is becoming increasingly selective. For deal makers, investors and corporate leaders alike, understanding where that capital is flowing may prove even more important than tracking the headline numbers themselves.