Global M&A activity down 4 per cent in first eight months of 2026

Global dealmaking activity fell during the first eight months of the year compared to the same period a year earlier, as M&A was impacted by higher financing costs, geopolitical headwinds and persistent macroeconomic uncertainty.

According to new figures from intelligence and productivity platform GlobalData, the total number of global M&A, private equity and venture capital deals fell by 4 per cent year-on-year during the period from January to August 2026, in comparison with the same period of 2025.

Analysis of GlobalData’s Financial Deals Database showed varied momentum across the different deal types, with M&A down 6 per cent over the period, driving the overall decline. In comparison, venture financing activity remained flat as funding appetite was sustained across a number of high-potential sectors, while private equity deal volume increased 4 per cent year-on-year.

Among the major global regions, North America was the only geography to see growth, with a modest year-on-year deal volume increase of 0.8 per cent. All other regions, however, saw activity decline over the same period.

Asia-Pacific dealmaking fell by 8 per cent, while Europe saw a drop of 5 per cent, the Middle East and Africa recorded a 1 per cent fall and South and Central America saw the sharpest decline, with activity down 13 per cent.

Dealmaking also remained subdued across several major individual countries, including the UK (down 4 per cent), Japan, (33 per cent), Canada (7 per cent), Germany (5 per cent), Australia (17 per cent), South Korea (5 per cent), France (7 per cent), Italy (1 per cent), Brazil (20 per cent) and the UAE (13 per cent).

GlobalData Lead Analyst Aurojyoti Bose commented: “Dealmakers globally have adopted a cautious, highly selective stance in 2026. While macroeconomic uncertainty and valuation misalignments have dampened M&A activity, private equity investors stepped in to capitalize on attractive entry valuations, and venture funding has also exhibited notable stability. Moreover, the sharp divergence across geographies highlights how domestic economic fundamentals and regulatory environments are driving local deal activity.”

Despite the widespread global drop in activity during the first eight months of the year, several prominent markets bucked the trend, with the US, the world’s largest market in terms of global deal flow share, seeing activity rise 2 per cent year-on-year.

The world’s second-biggest market, China, saw a 10 per cent rise, while India, Spain and Israel each recorded year-on-year growth of 3 per cent.

The UK fits this selective pattern on volume, but not on value. GlobalData's figures place UK deal activity down 4 per cent year-on-year over the eight months, in line with the global trend for deal numbers. By value, however, the UK is moving in the opposite direction. Separate PitchBook data shows UK M&A value reached £178.9 billion in the year to early July, putting the market on course for an annualised total of roughly £347 billion. That would be a record, ahead of the £309.2 billion high set in 2015 and well above the £257.1 billion recorded in 2025.

The gap reflects a "volume down, value up" dynamic, in which a small number of very large transactions are carrying the market. The year's biggest UK deals include McCormick's merger with Unilever's food business, Engie's acquisition of UK Power Networks and Nuveen's £9.9 billion takeover of Schroders, with strategic buyers striking eight of the ten largest and overseas acquirers particularly active. Global dealmaking cooled further by value over the third quarter, falling sharply from a record first half, but the UK's deep pipeline of large, mostly announced transactions has kept its 2026 value trajectory intact.

Although deal volumes remain constrained across most regions, resilient activity in key markets such as the US, the UK and China, coupled with stable VC funding activity, could support a selective recovery as conditions improve.”

Despite the drop in M&A volume, the UK is on track to see record dealmaking value in 2026

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