Elizabeth Kuhr
Matthew Toole
After a strong 2025, M&A surged Q1 2026. US-based mega deals continue to fuel the data, but other trends are emerging too. Europe M&A reached an eight-year high, Asia Pacific declined 31%. Activity in the middle market is also beginning to stir up, driven by private equity transactions. With continued global uncertainty, having access to trusted financial markets news – with exclusives that deliver a competitive edge – is more important than ever before.
- M&A global transaction volumes were at a five-year high in Q1 2026 (M&A up 27% year-on-year), as highlighted in LSEG’s Behind the Deals series. This unprecedented activity continues the strong momentum established in 2025, reflecting emerging trends in the market.
- Although US mega deals dominated last year, 2026 is seeing transactions growth in EMEA as well as in the middle market.
- As the exclusive provider of Reuters News to the financial community, LSEG delivers actionable insights through a wide range of solutions and delivery formats.
The Q1 2026 M&A review was released on 1 April. It shows global announced M&A reached a five-year high and was up 27% year-on-year — analysis that also powers the newly released “State of Global M&A” report.
Subsequently, the April M&A Snapshot released on 4 May, showing global announced M&A still at a five-year high and up 38% versus the same point in 2025. “It isn’t traditional strategic M&A,” says Matt Toole, Director at LSEG Deals Intelligence, about what’s driving the market. “It’s more capital investment, with corporates, venture capital, and private equity funding these companies. It’s driving a major level of dollar volume and will be the story of 2026.”
- Global M&A deal value in 2025 hit $4.6 trillion, a 49% increase from 2024 and the highest figure since 2021. [note1]
- There were 68 mega deals, transactions valued at more than $10 billion in 2025, the most since records began in 1980. [note2]
- The total value of cross-border transactions rose 46% to $1.24 trillion, the highest level since 2021. [note3]
The US predominantly drove the 2025 activity, where the regulatory environment changed. As AI tools and infrastructure development accelerate, many of the mega deals happened in the technology sector in 2025. The trend continues: In the first two months of 2026, technology accounted for 33% of M&A transactions globally. 47% of those deals were announced in the US. While the middle market was less active in 2025, the increase in private equity deals in 2026 has driven more mid-market action.
US deal value robust in Q1 2026
The M&A deal strength is continuing in 2026. For January and February, the Americas led with total deals valued at $440 billion, up 78% year-on-year. Examples of specific deals in Reuters news exclusives include:
EMEA M&A transactions rise
After a more robust 2025, European M&A has had a strong start to the year. Announced transaction value in the region is up 82% from 2025. “Europe has had one of its best starts ever, driven mostly by the UK where we've seen lots of inbound deals,” says Anousha Sakoui, EMEA M&A Editor at Reuters. “A big factor is the FTSE 100 trading at a discount to European and US stocks, creating opportunities for buyers.” Examples include these Reuters News exclusives:
- UK’s Schroders discussed private capital tie-ups in growth push, sources say
- EU looking to ease path for pan-European deal approvals, sources say
- Thyssenkrupp could divest materials trading division as soon as 2026, sources say
The European Commission is taking steps to streamline M&A activity in the region. On April 30, 2026, it released a 98-page draft of new Merger Guidelines for public consultation, with comments open until June 26 and a stakeholder workshop scheduled for June 10. An accompanying economic study on the dynamic effects of mergers is expected in September. If implemented, these changes could further boost deal activity across Europe.
APAC M&A starts 2026 strong
While Asia-Pacific showed early signs of momentum at the start of 2026, activity had declined 31% by the end of Q1, continuing a multi-year contraction in regional dealmaking. According to the LSEG Deal Makers Briefing webinar, the US$8.8 billion takeover bid for Australia’s BlueScope Steel in January helped drive APAC deal volume up to US$50.8 billion, marking a four-year high. Other activity in Q1 2026 so far – covered in exclusives from Reuters News – includes:
Middle market transactions to rise
Executives at middle market companies and private equity firms are optimistic about M&A, according to a recent Reuters article. 58% expect deal volume to climb in 2026. Exclusive stories from Reuters News in Q1 2026 bear out this forecast:
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Sources
[1] https://www.reuters.com/legal/transactional/ma-lawyers-see-bulging-pipeline-2026-after-deal-crazed-year-2026-01-07/ | Back to Note 1
[2] https://www.reuters.com/legal/transactional/ma-lawyers-see-bulging-pipeline-2026-after-deal-crazed-year-2026-01-07/) | Back to Note 2
[3] https://www.reuters.com/business/finance/more-mega-deals-coming-chase-scale-fuels-near-record-breaking-year-ma-2025-12-18/ | Back to Note 3
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