Global M&A boom loses momentum after record first-half rebound

13:15

By: Azzat Manal

Global M&A boom loses momentum after record first-half rebound

The strong recovery in global mergers and acquisitions is beginning to lose momentum after a robust first half of the year, with deal activity falling sharply in the third quarter amid high borrowing costs and persistent uncertainty over the global economy.

Data from LSEG show that the total value of mergers and acquisitions completed during the three months through September reached around $986 billion, down from approximately $1.7 trillion in the previous quarter. Deal value was also 13% lower than during the same period a year earlier.

The slowdown comes after an unusually strong first half, which had raised expectations that 2026 could become another record year for global M&A activity. However, elevated financing costs and growing investor caution have increasingly weighed on the market.

Despite the third-quarter decline, announced deals since the beginning of the year have reached approximately $3.9 trillion. That figure remains historically high and is approaching the $4.2 trillion recorded during the first nine months of 2021, one of the strongest periods for global dealmaking.

Higher interest rates remain one of the main obstacles facing large transactions. More expensive financing increases the cost of acquisitions and forces companies and investors to reassess the financial attractiveness of deals, particularly transactions that rely heavily on debt.

The third quarter nevertheless produced several major transactions, demonstrating that large-scale deals remain possible despite the more challenging environment. Among them was Aon’s agreement to acquire insurance broker USI from KKR-backed ownership for approximately $17 billion.

The technology and digital services sector also featured prominently, with Uber Technologies announcing plans to acquire German delivery platform Delivery Hero in a transaction valued at around €13 billion.

The focus is now turning to whether the third-quarter slowdown represents a temporary adjustment or the beginning of a more cautious phase for the global M&A market.

A recovery in dealmaking will likely depend on developments in interest rates and financing conditions, as well as companies’ willingness to revive expansion and acquisition plans that were postponed during periods of heightened uncertainty.

For now, the global M&A market remains active by historical standards, but the sharp quarterly decline suggests that the exceptional momentum seen during the first half of 2026 is proving increasingly difficult to sustain.