Deal values jump 155% as large transactions return despite geopolitical volatility, according to the re/insurance broker
Global M&A activity surged in the first quarter of 2026, with total deal value reaching a five-year high of $438bn, driven by a sharp rebound in mega transactions, according to WTW.
A total of 12 deals valued at $10bn or more were completed in the quarter, the highest level since 2008 and a significant increase from just two such transactions in the previous quarter.
The resurgence of large-scale deals helped propel overall M&A value up by more than 155% compared to the same period in 2025, reflecting renewed confidence among well-capitalised acquirers.
Deal volumes also increased, with 215 transactions above $100m completed globally in the first quarter, a 32% rise year on year and the fifth consecutive quarterly increase.
Performance also improved, with acquiring companies outperforming the wider market by +2.5 percentage points, marking a sharp turnaround from the previous quarter when acquirers underperformed by -13.9 percentage points.
Jana Mercereau, head of Europe M&A consulting at WTW, said large transactions have returned strongly to the market.
“Mega transactions have re-emerged with a vengeance,” Mercereau said.
“Well-capitalised dealmakers have returned to the market with renewed confidence, taking advantage of improved M&A conditions to pursue large strategic transactions to scale operations, bridge capability gaps and secure critical AI-enabling technologies,” she added.
Regionally, Europe led performance in the quarter, with acquirers outperforming their regional index by +6.0 percentage points across 40 deals.
UK buyers mirrored this trend, while North American and Asia-Pacific acquirers lagged their respective indices despite continued deal activity.
North American acquirers underperformed by -5.4 percentage points with 117 deals completed, while Asia-Pacific buyers were -3.4 percentage points below their regional index with 49 deals.
Chinese buyers continued to show signs of recovery, completing 21 deals in the quarter following a period of subdued activity in 2024.
Mercereau said underlying market conditions remain supportive, but geopolitical risks could yet influence deal momentum.
“Pent-up demand, a favourable regulatory environment and healthy balance sheets have reawakened animal spirits, driving the value of dealmaking close to all-time highs,” she said.
“The duration and scale of the Middle East conflict, however, risks denting deal momentum, with corporate executives likely to stretch timelines and deepen due diligence,” she continued.
“Boardroom confidence remains strong, for the time being at least, as dealmakers normalise heightened geopolitical risk and appear resolved to ride through the bumps and persist with strategic deals,” Mercereau added.
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