M&A transactions of $10 billion or more have hit a record in the first quarter of 2026, with 12 “mega deals” closed, the highest figure for any quarter since 2008, according to WTW.
WTW’s Quarterly Deal Performance Monitor (QDPM) found that the higher share of transactions exceeding $10 billion also propelled the value of completed deals in the first quarter of 2026 to a five-year high of $438 billion, marking a 155% compared to the same period in 2025.
In the first quarter of 2026, 56 large deals (valued over $1 billion) were completed, marginally higher than the previous quarter and an increase from 40 deals in the first quarter of 2025.
Jana Mercereau, Head of Europe M&A Consulting, WTW, commented, “Mega transactions have re-emerged with a vengeance. 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.”
WTW reported that European dealmakers led the M&A market in the first quarter of 2026, delivering a strong performance.
European buyers outperformed non-M&A companies by +6.0 percentage points based on share price performance, completing 40 deals. UK acquirers mirrored this trend, recording similarly positive results.
In contrast, Asia-Pacific buyers lagged their regional index by -3.4 percentage points, completing 49 deals during the quarter. Chinese buyers maintained momentum with 21 transactions, continuing the post-2024 recovery in deal activity following record lows.
North American acquirers also underperformed their benchmark, posting -5.4 percentage points despite 117 deals completed in Q1 2026.
This compares with -16.1 percentage points and 96 deals in Q4 2025, indicating a modest improvement in deal-making activity.
Mercereau concluded, “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.
“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.
“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.”
