The global M&A market has returned to growth in 2026, although the recovery continues to unfold unevenly across sectors and regions. Dealmaking sentiment, as tracked by BCG’s M&A Sentiment Index, has recently strengthened in most markets. However, dealmaking conditions continue to be shaped by AI-driven transformation, geopolitical tensions, regulatory shifts, and macroeconomic uncertainty.
Many dealmakers paused amid periods of heightened uncertainty in 2025 and 2026, but now most have returned to the negotiating table with clearer investment theses and a sharper focus on distinctive M&A capabilities. In many cases, this change has entailed placing greater emphasis on regional opportunities that may offer some protection against global volatility.
To better understand these dynamics, BCG asked experts in nine regions to assess the state of their M&A markets and to share their perspectives on recent trends and near-term drivers of deal activity. Here are their perspectives:
The Africa Perspective
Africa’s M&A market found firmer footing in 2026, arresting the recent slide. Through July, deal value involving African targets or acquirers reached $11.6 billion, up 19% from $9.7 billion in the same period of 2025. But deal volume fell 32%, from 294 transactions to 200. The increase in deal value modestly outpaced that of the global market, which was about 19% over the same period even as global deal volume declined by 16%.
Africa's recovery mirrored the global pattern: deal value gains were concentrated in a small number of large transactions. Only three transactions worth $500 million or more had been announced through July, compared with nine in each of the previous two full years. Yet those three deals—together worth $8.7 billion—accounted for roughly 75% of the total Africa-linked deal value. The other 197 deals totaled only about $2.9 billion, significantly less than in the same period of 2025.
This concentration is not a new phenomenon. For well over a decade, Africa’s M&A market has been characterized by a handful of large transactions accounting for a disproportionate share of announced value, reflecting a market that has yet to develop the depth and critical mass of more established regions. What distinguishes 2026 is the scale of the large transactions: for deals valued at $500 million or more, the average size more than doubled, to $2.9 billion through July from $1.1 billion over the same period of 2025.By contrast, the average size of smaller deals was essentially unchanged year over year, at roughly $14 million. The pattern is consistent with BCG’s global findings: megadeal activity has returned to levels last seen during the 2021–2022 boom, while smaller-deal volumes remain subdued.
The rebound is also uneven between inbound and outbound activity. Deal value targeting African companies rose 63% through July, to $7.8 billion from $4.8 billion in the same period of 2025. Meanwhile, deal value involving African acquirers fell 44%, from $8.3 billion to $4.7 billion. (The two figures are not additive because intra-Africa deals are counted as both inbound and outbound.) This reversed the 2025 pattern, when inbound activity was weaker and outbound dealmaking proved comparatively resilient. In 2026, foreign strategic and financial buyers moved decisively on African targets, even as African companies and investors pulled back from acquisitions abroad.
Several sectors led large-deal activity in Africa:
- Materials and Mining. This sector again dominated inbound activity, accounting for roughly three-quarters of the value of deals targeting African companies. The year’s largest transaction—and the main driver of the sector’s weight—was South32’s agreement to sell five aluminum value-chain assets to Alcoa for an estimated $5.5 billion. Those assets include Worsley Alumina, Hillside Aluminium, the MRN bauxite mine, and South32’s Brazilian alumina and aluminum operations. The transaction represents a rare instance of a major diversified miner divesting an entire commodity value chain to a US strategic buyer. Announced in June 2026, the deal is still pending.
- Energy. The energy sector remained a cornerstone of inbound activity, again led by buyers from the Gulf States. In July 2026, ADNOC Distribution agreed to acquire Shell’s South African downstream retail-fuel business for $1.0 billion, extending the pattern of Middle Eastern national oil companies building downstream positions on the continent. In a smaller completed transaction, Norway’s Panoro Energy paid Kosmos Energy $167 million to increase its stake in Equatorial Guinea’s offshore Ceiba field and Okume oil-producing complex from 14.25% to 54.6%.
- Financial Services. Consolidation continued in Morocco’s financial services sector, where Sanlam Maroc completed its approximately $277 million buyout of Allianz Maroc, extending the M&A wave in the country's life insurance market. Morocco’s Ayrad Group completed a $150 million acquisition of Luxembourg-based investment advisory business Osead Fund, which holds a significant minority interest in Compagnie Minière de Touissit, a Moroccan mining company.
- Private Capital. Deal value linked to private equity (PE) nearly tripled, rising to $2.9 billion through July from $1.0 billion in the same period of 2025, even as the number of PE deals fell from 58 to 46. PE-linked transactions have accounted for roughly one-quarter of total Africa-linked deal value thus far in 2026, up from about one-tenth over the same period last year. Financial investors were particularly active in real estate, with South Africa’s Vukile Property Fund among the most prominent buyers. The broader re-engagement of global private equity investors seen in 2024 and 2025 has slowed markedly in 2026, however.
Globally, BCG’s M&A Sentiment Index, which tracks dealmakers’ willingness to transact approximately six months ahead, stands at 83, up from 79 at the beginning of the year but still below its long-term average of 100. Confidence remains concentrated in the largest transactions and in sectors linked to AI, energy, and digital infrastructure—areas that align with Africa’s structural strengths in energy transition, mining supply chains, and digital connectivity.
The conflict in the Middle East has created additional uncertainty for Africa's M&A market. Gulf sovereign funds and state-backed companies remain among the continent's most important investors, as exemplified by ADNOC Distribution’s agreement to acquire Shell’s South African downstream retail-fuel business. Although Gulf investors have stayed active, ongoing regional instability could make their capital deployment more selective, favoring essential strategic assets over other potential deal targets.
The medium-term outlook remains cautiously constructive, but the risks are more pronounced today than they were a year ago. Africa’s demographic growth, urbanization, and digital adoption continue to underpin long-term investor interest, while the continent’s role in global energy-transition and critical-minerals supply chains should continue to attract strategic buyers to marquee assets. Nevertheless, the experience of 2026 shows that headline recovery figures can obscure a market that still relies on a small number of large transactions, with African acquirers themselves stepping back from dealmaking abroad. For investors with long-term horizons, Africa remains a market of opportunity—but one in which the breadth of that opportunity has yet to catch up with its scale.
The author is grateful to Ouassima El Bouri of BCG’s Transaction Center for her valuable insights and support in the preparation of this article.
The France Perspective
France's M&A market regained momentum over the first seven months of 2026, although the recovery remained concentrated in a limited number of large strategic transactions. Announced deal value involving a French acquirer or target company reached $80.7 billion, and deal activity totaled slightly more than 1,000 announced transactions. Deal volume remained below historical averages, highlighting a market in which value has recovered more quickly than overall activity. This mirrors the broader global environment: stable financial conditions, strategic needs, and strong conviction have supported larger transactions, but geopolitical and economic uncertainty has kept buyers selective.
French companies continue to use M&A to strengthen their market positions, acquire technology and innovation capabilities, and optimize their portfolios. Regulatory scrutiny remains an important consideration in many strategic sectors.
Several sectors led M&A activity in France:
- Telecommunications. Telecommunications was the defining sector for French M&A in 2026. The proposed acquisition and break-up of SFR by a consortium comprising Bouygues Telecom, Free (a subsidiary of Iliad), and Orange would reshape the French telecommunications market. At approximately $24 billion, it represents one of Europe's largest announced transactions of the year. The deal reflects a renewed appetite for domestic consolidation while highlighting the importance of regulatory execution in transactions that involve critical infrastructure.
- Technology, Media, and Marketing Services. French companies continued to invest in digital capabilities and AI-enabled business models. Publicis Groupe's acquisition of LiveRamp strengthens its leadership in data-driven marketing and customer engagement, highlighting how French firms are increasingly using M&A to accelerate technology transformation and AI capabilities.
- Financial Services. French financial institutions remained active cross-border acquirers. BPCE’s acquisition of novobanco and BNP Paribas subsidiary Arval’s acquisition of Athlon demonstrate the sector's continued focus on strengthening European platforms, expanding customer offerings, and building scale through strategic M&A.
- Health Care and Life Sciences. Health care deal activity slowed in the first seven months of 2026 compared with the same period in 2025, which was marked by Sanofi's landmark Opella transaction. Nevertheless, French pharmaceutical companies continued to be active buyers abroad. Servier's acquisitions of Edgewise Therapeutics and Day One Biopharmaceuticals highlight the sector's focus on strengthening innovation pipelines and acquiring differentiated scientific capabilities through international M&A.
Regionally, BCG’s M&A Sentiment Index shows strong confidence among European dealmakers. At 100, the region has matched its long-term average, markedly ahead of the Americas at 73 and the global benchmark at 83. This relative strength reflects the continent’s comparative stability in an increasingly uncertain global environment. Like broader European sentiment, the outlook for French M&A is cautiously positive. Stable financing conditions, healthy corporate balance sheets, and continued portfolio optimization should support activity through the remainder of 2026, although the recovery is likely to remain selective rather than broad-based.
We expect strategic consolidation to continue across sectors as companies seek greater scale, stronger capabilities, and access to innovation. Nevertheless, the long-term impact of AI on the M&A market remains uncertain. While AI is already shaping investment priorities, its broader effect on dealmaking and industry dynamics is still unfolding.
The author is grateful to Julien Laurent of BCG’s Transaction Center for his valuable insights and support in the preparation of this article.
The Germany Perspective
Germany’s M&A market moved from stabilization to a clear recovery in the first half of 2026. Dealmaking regained momentum in both deal value and deal volume. Aggregate deal value surged, propelled by a handful of very large transactions; and in a notable break from 2025, deal volume rose as well. Although this represented a meaningful improvement over 2025, it was not a broad-based boom. Germany outperformed both Europe and the global M&A market, underscoring the continued attractiveness of German companies as acquisition targets and the importance of M&A for domestic players that seek to maintain their competitive edge.
Companies in Germany continued to favor larger, more transformative transactions. Several megadeals lifted aggregate value well above 2025 levels, and deal counts also increased. In the first seven months of 2026, Germany’s total deal value more than doubled, rising by roughly 122% compared with the same period in 2025 and exceeding the ten-year average by 45%—far outpacing the corresponding gains of 19% globally and 57% across Europe. More strikingly, German deal volume increased by about 4%, in sharp contrast to declines of roughly 16% globally and 14% across Europe. Germany was one of the few major markets to record increases in both deal value and deal volume.
Several sectors saw significant large-deal activity in Germany:
- Industrials and Materials. This sector produced the year’s largest transactions. Long-discussed deals came to market as companies acted on strategic and portfolio priorities. The largest German-linked deal was Finland-based Kone’s roughly $23.7 billion acquisition of elevator maker TK Elevator. Private equity featured prominently, too. Lone Star agreed to acquire Continental’s ContiTech unit for approximately $4.9 billion. In specialty chemicals, Henkel expanded through its roughly $2.5 billion purchase of Netherlands-based Stahl.
- Health Care. Deals in this sector remained a core driver of German M&A, accounting for three of the country’s ten largest deals. In a standout cross-border transaction, Merck KGaA, the German science and technology company, agreed to acquire US-based life-sciences group Bio-Techne for approximately $11.5 billion. US buyers were active in German biotech, with Gilead Sciences acquiring Munich-based Tubulis for roughly $5.0 billion. Some German dealmakers moved in the opposite direction as well, with Bayer adding US-based Perfuse Therapeutics for approximately $2.5 billion.
- Consumer and Technology. In one of the year’s largest deals, Uber agreed to acquire Berlin-based food-delivery platform Delivery Hero for approximately $11.6 billion. In consumer and retail, UK-based Frasers Group acquired a stake of roughly $533 million in fashion house Hugo Boss. Telecommunications also featured prominently, with Deutsche Telekom’s US unit, T-Mobile US, agreeing with Oak Hill Capital to form a joint venture to combine fiber operators GoNetspeed and Greenlight Networks in a transaction that values T-Mobile US’s share at approximately $2.0 billion.
Beyond these sectors, transport and logistics activity included Hapag-Lloyd’s roughly $4.2 billion announced combination with Israel’s ZIM. In financial services, European banking consolidation remained a prominent theme, as UniCredit continued its pursuit of Commerzbank.
Private equity was highly active, accounting for approximately two-thirds of German deal value and roughly 37% of deal volume through the first seven months of 2026. Lone Star’s acquisition of ContiTech was the marquee example. In all, 21 large deals (valued at $500 million or more), including three megadeals (valued at $10 billion or more), were announced.
Germany’s IPO market extended its tentative recovery, as significantly more listings in the first half of 2026 raised roughly €750 million—approximately double both the number and the value recorded a year earlier. Renewed momentum in international M&A and IPO markets, including a revival in US listings, is supporting German IPO activity as well.
Regionally, BCG’s M&A Sentiment Index shows that European dealmaker sentiment is strong. At 100, the region has matched its long-term average, well ahead of both the Americas mark of 73 and the global benchmark of 83. This relative strength reflects the continent’s comparative stability in an increasingly uncertain global environment. That pattern is consistent with activity in Germany, where confidence supports the M&A market’s continued resilience, although driven by larger deals rather than higher volume.
The outlook for German M&A is selectively positive, but the recovery is likely to be gradual rather than linear. Momentum should broaden further, particularly in small and midsize transactions, supported by a deep structural pipeline that encompasses business-succession situations, portfolio streamlining and carve-outs, digitization and AI adoption, the energy transition, and continued industrial consolidation. Government spending on infrastructure and defense should provide an additional tailwind. For example, the European Commission plans to revise its merger regulations to increase their emphasis on considerations such as competitiveness, resilience, innovation, and efficiencies.
Financing will remain selective. Companies with resilient cash flows can readily obtain financing, but those with weaker cash flows or higher leverage will require more equity and flexible pricing structures. Nevertheless, strong corporate balance sheets and abundant private equity capital give many buyers ample means to act. Uncertainty around tariffs and geopolitics is likely to persist, even as market participants grow more accustomed to it. As in prior years, dealmakers are likely to prioritize future-ready businesses.
The author is grateful to Daniel Kim of BCG’s Transaction Center for his valuable insights and support in the preparation of this article.
The Italy Perspective
Italy’s M&A market stood apart in the first seven months of 2026. While Europe and the global market concentrated activity in fewer and larger transactions, Italy recorded broad-based dealmaking by volume but with lower aggregate value. Continued breadth, rather than scale, defined the market.
The largest transactions came from health care, telecommunications, and banking, while industrials generated the greatest number of deals. Succession-driven midmarket transactions boosted the market’s breadth, and private equity remained active, underscoring the continued appeal of Italian companies as acquisition targets. Italian companies were also active buyers abroad.
The first seven months of 2026 saw the announcement of more than 900 deals involving an Italian target or acquirer—the highest total for the first seven months of a year in the past decade and almost 20% above the ten-year average from 2016 to 2025. Aggregate announced deal value told the opposite story. At $39.9 billion, it was down 26% from $53.8 billion during the same span in 2025 and approximately 10% below the ten-year average. Italian companies were therefore transacting more often but at lower average values. If they proceed, however, several potential large deals that were not formally announced prior to July 31 could lift the year’s total value substantially.
Three sectors account for most of the year's M&A value in Italy, each featuring large transactions:
- Telecommunications. Poste Italiane’s $12.5 billion acquisition of Telecom Italia was announced in March. The transaction will return Italy’s largest telecom operator to significant state control nearly three decades after privatization.
- Financial Institutions. Unipol Assicurazioni agreed in June to acquire selected assets of Banca Monte dei Paschi di Siena (MPS) from Intesa for up to $4.0 billion. The transaction covers approximately 635 bank branches, the MPS brand, and most of the bank’s central functions and head-office operations. It is part of Intesa’s proposed $35.2 billion public purchase and exchange offer for MPS. More broadly, financial institutions remained Italy’s most active large-cap sector and continued to attract international attention, with UniCredit’s continued interest in Germany’s Commerzbank among the most prominent potential acquisitions.
- Health Care. The third-largest deal in Italy so far this year was the $12.1 billion take-private of Milan-listed drugmaker Recordati by a private equity consortium led by CVC Capital Partners and Groupe Bruxelles Lambert. The clearest change in direction, however, was the increase in acquisitions abroad by Italian companies. Angelini Pharma’s $4.0 billion acquisition of Catalyst Pharmaceuticals, Chiesi’s $1.9 billion purchase of KalVista, and Amplifon’s $2.6 billion acquisition of GN Store Nord’s hearing business made health care Italy’s third-largest acquiring sector. The sector’s capital went primarily toward building scale through cross-border consolidation rather than toward reshaping domestic portfolios.
The middle market was also prominent, moving the center of gravity for Italian dealmaking well below the headline transactions. Industrials generated 193 announced deals—more than any other sector—but only $1.1 billion in disclosed value. Consumer staples, by contrast, combined meaningful volume and value, with 66 deals totaling $4.1 billion, anchored by CVC Capital Partners’ $3.4 billion acquisition of bakery ingredients group IRCA.
The structural explanation for Italy’s high deal count is its long tail of high-quality small- and mid-cap businesses in an economy that features extensive family ownership. As founders reach succession points, these companies come to market, and this phenomenon helped support Italian deal volume even as activity declined elsewhere in Europe.
An equally notable feature of the first half of 2026 involved outbound activity: Italian acquirers made four of the ten largest deals involving Italian companies, purchasing businesses in the US, Denmark, and Norway for a combined value of nearly $9 billion.
Private equity was a bright spot. Sponsor-backed deal value rose 37% year on year to $9.3 billion, even as sponsor deal count increased only 1%—the reverse of the broader Italian market. This pattern suggests that funds may be deploying accumulated dry powder into fewer but larger assets. Sponsors were responsible for roughly one-quarter of Italian deal value and one-third of deal count. The year’s defining sponsor transaction was the previously noted take-private of Recordati by CVC Capital Partners and Groupe Bruxelles Lambert, with backing from ADIA, CPPIB, and PSP. The deal is one of Europe’s largest health care buyouts in recent years. It also underscores the international source of capital: overseas bidders participated in nine of the ten largest Italian sponsor deals in the first seven months of 2026. Exit conditions improved but remained selective, with secondaries and strategic sales progressing while IPO exits stayed largely muted.
Regionally, BCG’s M&A Sentiment Index shows strong confidence among European dealmakers. At 100 the region has matched its long-term average, markedly ahead of the Americas at 73 and the global benchmark at 83. This relative strength reflects the continent’s comparative stability in an increasingly uncertain global environment. That pattern is consistent with activity in Italy, where confidence supports the M&A market’s continued resilience.
Italian M&A is likely to remain resilient through the rest of 2026. Further consolidation in banking will support activity, as transactions among the largest institutions prompt repositioning by second-tier lenders and insurers. Succession-driven sales among family-owned midmarket companies will provide another source of activity. A steady infrastructure pipeline, reinforced by several large transactions in the first half of the year and by the European Commission's approval of a €23 billion state-aid scheme for renewable energy, adds further momentum.
Italy’s 2026 regulatory reforms could provide a supportive backdrop by reducing execution risk for public takeovers and clarifying the framework for reviewing strategic transactions. The reformed Consolidated Law on Finance, in force since late April, lowers execution risk through a uniform 30% mandatory bid threshold, a 90% squeeze-out threshold, and a new shareholder-approved cash acquisition route. Balancing these changes are tighter “put up or shut up” rules and stronger shareholder protections in delisting votes. Separately, Law 4/2026 expands the scope of the Golden Power foreign investment regime with an economic and financial security test. For financial institutions, government review must now follow European Central Bank and European Commission processes, which will curb discretion but likely lengthen deal timetables.
Financing conditions are supportive, although lenders remain selective. European credit markets are open, and private credit has become an established feature of Italian midmarket transactions, with sponsors often accepting lower leverage in exchange for greater execution certainty. Businesses with resilient cash flows continue to attract capital readily, but weaker and more highly leveraged borrowers require larger equity contributions and more flexible pricing. Nevertheless, strong corporate balance sheets and substantial sponsor dry powder provide buyers with ample capacity to pursue attractive opportunities.
Geopolitical uncertainty remains the principal constraint. Volatile energy prices, trade tensions, and conflict-related risks are lengthening diligence processes and widening the gap between buyers’ and sellers’ expectations. Even so, the market's structural drivers, together with supportive financing conditions, provide a solid foundation for continued deal activity.
The author is grateful to Dominik Degen of BCG's Transaction Center for his valuable insights and support in the preparation of this article.
The Middle East Perspective
M&A activity in the Middle East declined in the first seven months of 2026 as regional conflict heightened volatility. Deal volume fell 8%, while deal value dropped 25%, compared with a 19% increase in global deal value over the same period. The pullback followed a strong 2025, during which sovereign funds and state-linked companies deployed capital to advance industrial policy and, in Saudi Arabia, to further the objectives of the Vision 2030 diversification program.
The decline in headline activity nevertheless coincided with continued outbound investments by Middle East players. Several sectors highlight large-deal activity:
- Energy. Leading energy companies bought overseas assets that provided contracted or fee-based cash flows and greater geographic diversification. A notable example was ePointZero’s $2.3 billion purchase of US midstream operator Traverse Midstream Partners from The Energy & Minerals Group. The transaction involved a nonoperational interest, with day-to-day control remaining with Energy Transfer. ADNOC Distribution followed with a $1.0 billion agreement to acquire Shell Downstream South Africa, retaining the Shell brand under license. Meanwhile, ADNOC Drilling acquired a 70% stake in SLB’s Oman and Kuwait land-rig businesses for $112 million.
- Industrials. Sovereign-backed acquirers pursued transport and logistics platforms outside the region. A leading example was Dubai Aerospace Enterprise’s $7 billion acquisition of Macquarie AirFinance from Macquarie Asset Management, making it one of the world’s largest aircraft lessors. Abu Dhabi Ports followed with an $835 million purchase of Brazilian rail and logistics operator Corredor Logística e Infraestrutura. These deals expanded exposure to fee-generating infrastructure while reducing reliance on domestic energy revenues.
- Technology, Media, and Telecommunications. Continued momentum in gaming drove activity in the sector, as Saudi Arabia’s Public Investment Fund (PIF) advanced its multiyear expansion strategy. PIF’s Savvy Games Group agreed to acquire Shanghai-based Moonton Technology from ByteDance for $6.0 billion. The transaction added the Mobile Legends game to a portfolio built through the acquisitions of ESL FACEIT for $1.5 billion in 2022, Scopely for $4.9 billion in 2023, and Niantic’s games business for $3.5 billion in 2025. A PIF-led consortium’s pending $55 billion take-private buyout of Electronic Arts would extend its position further. Together, the transactions point to a deliberate strategy to consolidate a leading global position in gaming and esports.
The region became an increasingly important exit market for global financial sponsors and companies in 2026. Sellers included American Industrial Partners, Macquarie, ByteDance, Shell, SLB, and The Energy & Minerals Group, each of which transferred assets to a regional sovereign fund or state-linked company. This pattern underscored Middle Eastern buyers’ growing influence in competitive sales processes and their ability to shape transaction terms and valuations.
The year also marked a significant restructuring of Abu Dhabi’s sovereign investment landscape, as Abu Dhabi Developmental Holding Company, known as ADQ, was consolidated into L’IMAD Holding Company. The resulting sovereign investment platform manages roughly $300 billion in assets and has a mandate to deploy capital both domestically and internationally.
The Middle East's M&A performance in 2026 points to a more selective phase of capital deployment following an exceptional year in 2025. As global dealmaking broadens, the region is becoming less exceptional as a source of M&A value. At the same time, the rise of technology and industrials alongside the continued importance of energy suggests a gradual diversification of investment priorities. The Middle East therefore remains both a deep source of capital for global sellers and a platform from which regional champions can pursue international expansion.
The authors is grateful to Adhiraj Kapur of BCG’s Transaction Center for his valuable insights and support in the preparation of this article.
The Nordics Perspective
The Nordic M&A market sent mixed signals in the first seven months of 2026. Aggregate deal value surged, but the increase was driven almost entirely by a single megadeal: the Kone–TK Elevator merger. Deal volume, meanwhile, declined from 2025 levels. The result was a value-led rebound rather than a broad-based recovery in dealmaking. Even so, the Nordics outpaced the global M&A market in value growth, highlighting both the enduring appeal of the region’s assets and the ambition of Nordic acquirers seeking scale abroad.
This pattern is clear in the underlying figures. In the first seven months of 2026, deal value involving Nordic acquirers or targets rose roughly 74% compared with the same period in 2025—significantly outpacing the 19% global increase and exceeding the 57% rise across Europe. Nordic deal volume fell by about 6% over the same period, a softer decline than the 16% global drop and the 14% pullback across Europe. The Nordics thus mirrored the broader European pattern of rising deal value and falling deal volume, but with the value increase dependent to an unusual degree on a single transaction.
Several sectors saw significant activity involving large deals:
- Industrials and Machinery. In the year's largest transaction, Finland-based Kone agreed to combine with German elevator maker TK Elevator for approximately $23.7 billion—the largest deal in Finnish corporate history and one of the largest private equity exits ever in Europe. Kesko announced its largest acquisition to date, buying Dahl's technical trade businesses in Sweden, Norway, and Denmark from France's Saint-Gobain for roughly $1.8 billion. Hexagon expanded into nondestructive testing through its $1.5 billion purchase of Waygate Technologies from Baker Hughes.
- Technology. Dealmaking in this sector accounted for three of the ten largest transactions of the year so far. Foreign interest in Nordic tech was evident, as CPP Investments and Equinix agreed to acquire atNorth, an Iceland-headquartered colocation and data center provider, for approximately $4.0 billion. Finland-based IQM Quantum Computers entered into a business combination agreement with Real Asset Acquisition Corp., a Nasdaq-listed special-purpose acquisition company, valuing the Finnish company at $1.8 billion.
- Private Equity. Private equity activity remained high, with financial sponsors involved in approximately 75% of Nordic deal value and roughly one-third of deal volume so far in 2026. Cross-border deals were prominent. Sweden’s EQT acquired UK-based Coller Capital, made a tender offer for Japan-based Kakaku.com, and formed a joint venture with US-based Americold; each of these transactions was valued at more than $2 billion. Another notable buyout was Nordic Capital’s agreement to acquire infrastructure provider Flowa Technology for roughly $690 million. Across all deals involving financial sponsors, companies in the region have announced 16 large deals valued at $500 million or more in 2026 to this point.
Beyond these sectors, health care deals included the acquisition by Italy's Amplifon of GN Store Nord's hearing business for approximately $2.6 billion. In energy and power, Vår Energi agreed to combine with BlueNord for roughly $1.3 billion.
Nordic equity capital markets were unusually active. The first seven months saw 19 IPOs completed, although the aggregate proceeds of approximately €1.4 billion were closer to typical levels. Sweden and Norway were the leading listing locations by volume, but Denmark raised the highest proceeds, at roughly €525 million. Finland saw steady activity, and Iceland recorded no new listings.
Regionally, BCG's M&A Sentiment Index shows European dealmaker sentiment edging higher. At 100, the region has matched its long-term average, well ahead of both North America at 73 and the global benchmark at 83. This relative strength reflects the continent's comparative stability in an increasingly uncertain global environment.
Against that supportive backdrop, the outlook for Nordic M&A is selectively positive, although the recovery is likely to remain gradual and uneven across markets rather than being broad-based. Momentum is likely to extend beyond the Kone-TK Elevator megadeal that defined the first seven months. A structural pipeline of portfolio carve-outs from Nordic industrial conglomerates, digitization and AI-driven consolidation, and continued investment tied to the energy transition will support continued activity. Maturing private equity portfolios are set to bring more exits to market. Stabilizing inflation and lower interest rates are additional tailwinds. Companies with resilient cash flows should continue to have ready access to financing, but more leveraged borrowers will require additional equity and flexible pricing structures.
Conditions will vary meaningfully by country. Sweden, the region's largest and most liquid market, will likely remain the center of Nordic private equity activity, with technology and industrials showing resilience even as highly leveraged real estate companies deal with balance-sheet pressures. In Norway, the M&A climate should encourage modestly positive but selective dealmaking, shaped by cross-border activity and corporate portfolio optimization amid higher-for-longer interest rates and currency volatility.
Denmark is poised to continue benefiting from its life sciences and renewables base, with pharma, biotech, and wind-related assets attracting demand and with further consolidation likely in shipping and logistics. Finland, home to several of the region's most acquisitive industrial groups, should see continued outbound dealmaking in pursuit of scale abroad, alongside domestic consolidation in technology and other strategically important sectors.
As in prior years, dealmakers across the region will prioritize future-ready, resilient businesses. Notably, several of this year's largest transactions in the Nordics fit the pattern revealed in BCG’s research on value creation through M&A: transactions within the same geographic region that deliver international growth while keeping integration complexity manageable.
The author is grateful to Hans Rødahl of BCG's Transaction Center for his valuable insights and support in the preparation of this article.
The UK Perspective
For the UK M&A market, 2026 has so far been a year of larger but fewer deals. Over the first seven months, transaction value reached $235.3 billion, almost double the $119.0 billion recorded during the same period of 2025. The UK accounted for 37% of European deal value, up from 29% a year earlier. Sixty-five transactions worth more than $500 million generated 88% of the total, and the average value of the country’s large deals rose from $1.6 billion to $3.2 billion. Deal volume moved in the opposite direction, falling to 1,763 transactions from 2,272 for the same period in 2025.
One notable feature of the market was the return of foreign acquirers. Inbound acquisitions of UK assets, particularly larger companies, rose to levels comparable to those seen during the 2021–2022 cycle. Distinct patterns emerged among the sectors that have driven activity during 2026:
- Consumer Goods and Health Care. Acquisitions of UK consumer goods companies reached an aggregate deal value of $27.5 billion, compared with $15.2 billion in 2025. That total excludes McCormick’s proposed $44.8 billion acquisition of Unilever’s food business, a transaction substantially larger than the rest of the sector’s announced deal value combined. Health care deal value rose to $13.0 billion from $2.0 billion in 2025, with Eli Lilly’s $7.9 billion acquisition of Centessa Pharmaceuticals accounting for most of the increase. Excluding this blockbuster transaction, health care still recorded $5.0 billion in deal value. Despite the increase in value, deal volume fell in both consumer goods (from 478 to 326 transactions) and health care (from 100 to 52 transactions).
- Financial Institutions and Real Estate. Deal value over the first seven months of 2026 was $67.4 billion, more than double the total of $31.5 billion for the same period in 2025. Activity spread across 18 transactions worth more than $500 million, the largest of which accounted for less than one-third of the total. Wealth and asset management contributed roughly $23.7 billion, led by Nuveen’s proposed $12.9 billion acquisition of Schroders, while Zurich agreed to acquire insurer Beazley for $10.9 billion. Although deal volume dropped from 297 to 200, this sector recorded the country’s most broadly distributed increase in deal value in 2026. The largest deal was in the real estate subsector, with Prologis’s announced takeover of Segro valued at around $18.7 billion.
- Energy and Industrials. In both sectors, value increases were driven by a small number of exceptional transactions drove the overall increase in deal value. In the energy sector, deal value rose to $16.6 billion from $5.4 billion in 2025, with ENGIE’s $14.2 billion acquisition of UK Power Networks accounting for the vast majority of the increase. Industrials reached $24.4 billion, up from $15.2 billion, but the total was heavily influenced by competing bids for easyJet and Senior plc. Excluding those transactions, industrials deal value was $16.0 billion, broadly unchanged from 2025. Nevertheless, ABB’s $5.6 billion acquisition of Rotork underscored continued strategic appetite in the sector. Both energy and industrials recorded among the smallest declines in deal volume across all UK sectors.
Private equity activity continued to broaden. Sponsor-related deal value rose by 49% to $105.8 billion for the first seven months of 2026, from $71.1 billion for the same period last year, with sponsors involved in 28 of the 65 largest transactions. Roughly one-third of that value, however, came from sales of portfolio companies to strategic buyers rather than new sponsor investment. EQT’s $12.6 billion offer for Intertek would be the largest UK public-to-private transaction in nearly two decades. At the same time, three of the larger transactions withdrawn during the year involved sponsor-led take-private attempts, highlighting the continuing execution challenges involved in acquiring listed companies.
Regionally, BCG’s M&A Sentiment Index shows European dealmaker sentiment edging higher. At 100, the region has matched its long-term average, well ahead of both the Americas mark at 73 and the global benchmark at 83. This relative strength reflects the continent’s comparative stability in an increasingly uncertain global environment. That pattern is consistent with activity in the UK, where confidence has supported a pipeline of large strategic transactions but has yet to translate into a broader recovery in dealmaking.
The overall outlook for UK M&A through the remainder of 2026 depends heavily on whether a number of announced transactions reach completion. Roughly two-thirds of the year’s announced deal value is pending, including transactions involving Unilever, Schroders, Beazley, and Intertek. Strong corporate balance sheets, substantial private equity dry powder, and sustained international demand for UK assets should continue to support large-cap activity, with financial institutions providing the most durable source of momentum. A broader recovery, however, will require an expansion in dealmaking beyond the largest transactions.
The author is grateful to Gregory Hynes of BCG's Transaction Center for his valuable insights and support in the preparation of this article.
The US Perspective
A widening gap between deal value and deal volume has defined US M&A activity in 2026. Large strategic transactions returned across sectors, lifting aggregate deal value. Broader dealmaking remained subdued, however, as buyers and sellers navigated geopolitical and economic uncertainty and an ongoing valuation gap.
The underlying figures reflect that divergence. During the first seven months of the year, US deal value rose 25% compared with the same period in 2025, outpacing the global increase of 19%. Deal volume, by contrast, fell 26%, a steeper decline than the 16% drop globally.
To put the volume decline in context, transaction activity in the first half of 2026 dropped to its lowest level since the pandemic-disrupted first half of 2020. Yet activity involving deals valued at more than $500 million reached its highest level in three years, following a strong second half of 2025. The result was a bifurcated market in which a resurgence of large transactions masked exceptionally weak activity across the broader market.
Several sectors led large deal activity in the US:
- Technology, Media, and Telecommunications. This remained the largest US sector by deal value, accounting for roughly one-third of announced transaction value. Activity focused on exceptionally large transactions spanning traditional media and AI. The bidding war between Netflix and Paramount Skydance for Warner Bros. Discovery, which ultimately valued the company at roughly $80 billion, and Fox Corporation’s proposed $25 billion acquisition of Roku underscored the strategic value of access to premium content and scaled streaming distribution. In parallel, SpaceX’s $60 billion acquisition of Anysphere, the developer of the Cursor AI coding platform, highlighted the competition to secure leading AI software capabilities.
- Health Care. Health care again proved to be an always-on sector for M&A, accounting for approximately one-fifth of total US deal value in the first seven months of the year. In biopharma, buyers targeted companies with differentiated pipelines in high-conviction therapeutic areas, including AbbVie's $11 billion acquisition of Apogee and Vertex Pharmaceuticals' $10 billion acquisition of Crinetics. In medical technology, consolidation focused on strengthening product portfolios and clinical capabilities, highlighted by Boston Scientific's $15 billion acquisition of Penumbra and Danaher's $14 billion acquisition of Masimo.
- Energy. M&A activity continued to reshape the energy market, with substantial deals in both power and utilities and oil and gas. The sector accounted for roughly one-fifth of all announced deal value in the first seven months of 2026; however, deal volume fell 25% in comparison with the same period in 2025. In power and utilities, NextEra’s $67 billion acquisition of Dominion Energy reflected growing competition to secure generation and grid capacity amid the rising demands of data centers for electricity. In oil and gas, Devon Energy’s $22 billion acquisition of Coterra Energy continued the consolidation of upstream operators seeking greater scale and stronger positions in core basins.
- Consumer. Large transactions shaped consumer-sector M&A despite renewed uncertainty over North American trade policy. The sector's largest deals reflected confidence in long-term growth through strategic expansion. McCormick's $45 billion acquisition of Unilever's food business expanded its categories and broadened its brand portfolio, while Sysco's $29 billion acquisition of JRD Unico extended its reach into a new distribution channel.
Regionally, BCG’s M&A Sentiment Index suggests that confidence across the Americas is likely to stabilize through the remainder of 2026, although sentiment remains below Europe’s current level and the Americas’ historical average. Geopolitical tensions and regulatory scrutiny continue to temper sentiment, even as financing conditions and corporate fundamentals offer firm support.
For the US specifically, the M&A outlook remains positive. Healthy corporate balance sheets, ample private equity capital, and continued strategic pressure to reposition portfolios should sustain large-scale deal activity despite ongoing tariff uncertainty. In the near term, the defining feature of the market is likely to remain a concentration of M&A value in a relatively small number of transformational transactions, rather than a broad-based recovery in deal volume. Over the medium term, broader deal activity should recover as market uncertainty recedes and valuation gaps narrow.
The author is grateful to Thomas Endter of BCG’s Transaction Center for his valuable insights and support in the preparation of this article.
In Focus: The Asia-Pacific Perspective
Dealmaking in Asia-Pacific was down over the first seven months of 2026, compared to the same period in 2025. M&A volume declined by 9% in the region, and deal value by 14%. However, a deeper dive into the major Asia-Pacific countries and regions reveals contrasts in both M&A performance and the drivers of dealmaking activity. Bright spots emerged in Southeast Asia, India, and Japan, but even in cases where M&A value or volume increased, trends are shifting, calling for focus and flexibility from dealmakers. Likewise, even in locations where numbers were down, positive signals are emerging. In Greater China, for example, major thematic changes are setting the stage for increased activity. Although performance varied from one geography to the next, two common imperatives emerged: the need for an always-on M&A engine, as preparation for when the tide turns; and a strategic, as opposed to opportunistic, approach to deal planning.
Australia and New Zealand
M&A activity in Australia and New Zealand in fiscal year 2026 (July 2025 through June 2026) was subdued, with completed deal value sinking by one-third compared to the previous year, reaching its lowest level in the past ten years. Most notable was the absence of large deals, a stark contrast to the major strategic moves that characterized the regional market over the previous five years. In addition, inbound transactions, previously a market engine, reached their lowest level since 2017. Four forces combined to dampen activity: new regulations, which are extending approval timelines; the growing influence of superannuation funds; global instability and macro headwinds; and valuation gaps between buyers and sellers. On the plus side, Australia continues to command attention as a strategic supplier to global energy supply, and ongoing investment in the energy transition is attracting investors. Overall, the market calls for dealmakers to maintain a targeted, disciplined mindset and an approach to deal structure that bears regulatory approval foremost in mind.
Greater China
Despite declines in both deal value and deal volume over the first seven months of 2026, the regional picture for Greater China M&A is growing more constructive. Greater China is transitioning from a broad, market-wide investment opportunity to a collection of investable micromarkets. Four major themes predominate: First, financial sponsors are focusing on ownership structures that give them the control they need to create alpha, as opposed to relying on market growth alone. Second, Mainland China is becoming a magnet for dealmakers attracted by the quality and exportability of its intellectual property. Third, a dual AI agenda is emerging—one that focuses on consolidation of AI-related assets that are strategically important to both domestic and global customers, and another that emphasizes investment in the Mainland China AI stack, which is based on a separate global architecture. Fourth, outbound deals have become more targeted than trophy-driven, with buyers seeking to close specific strategic gaps.
India
Indian dealmaking volumes declined roughly 20% in the first seven months of 2026, but deal value remained relatively stable, declining only 2%. The decline in deal count may reflect increased discipline rather than reduced appetite, however, as dealmakers take a wait-and-see attitude with regard to policy clarity and global uncertainty. The deals that did close tended to be bigger bets: transactions valued at more than $1 billion increased by 14 percentage points over the prior year; and deals of more than $500 million have accounted for 59% of total transaction value since 2024. Meanwhile, outbound transactions increased in value by $3.8 billion, while domestic and inbound deals both declined in value. In a selective market, Indian dealmakers should maintain an always-on M&A engine, prioritize deals with long-term value potential, and focus on integration excellence.
Japan
In Japan, momentum from a robust year of M&A in 2025 carried over in the first seven months of 2026, with deal volume increasing by 2.8%. In addition to a number of longer-term structural drivers—including business development, global expansion, and industry consolidation—some new M&A themes have emerged. As Japanese companies come under pressure to rationalize their portfolios of businesses, restructuring is rising on the corporate agenda. At the same time, regulatory shifts have made proactive acquisition proposals for listed companies a part of the standard strategic toolkit in Japan. This has implications for both acquirers (which need to emphasize growth, not just synergies, in their proposals) and listed companies (which need to articulate and execute their own full-potential plans before they have to respond under pressure). Overall, winners will treat M&A not as a series of isolated transactions, but as a continuous strategic agenda for enterprise value creation.
Southeast Asia
The first seven months of 2026 saw a return to value growth for M&A in Southeast Asia, after three years of lean dealmaking. Deal value rose 44% while volume fell 11%. The rebound in value was fueled by improved valuations, which drew sellers back to market, and by a boost in foreign direct investment, among other forces. Despite these positive trends, the region’s companies continue to underutilize M&A. Dealmaking is chiefly opportunistic rather than strategic, dealmakers tend to favor diversification over value creation, and postdeal value creation is inconsistent. To change these dynamics, Southeast Asia’s corporate leaders should take a programmatic approach that starts with a mandate, progresses to execution, and concludes with integration and value capture.
South Korea
South Korea’s M&A market is becoming more concentrated at the top. The country’s ten largest transactions accounted for 44% of 2025 value, compared with 28% in 2022. The market is anchored by local M&A: from 2021 to 2025, roughly three in four deals were domestic, generating 68% of overall value. Cross-border deals, meanwhile, skewed larger in terms of value. However, the hidden engine behind a significant share of deals and deal value in the country is corporate divestiture, which serves as the market’s primary route for reallocating ownership. From 2021 to 2025, divestitures accounted for nearly 48% of deal count and more than 60% of deal value. For dealmakers, targeted execution, as opposed to generalized activity, is the key priority, and carve-out readiness should be a consistent priority.
