Investment bankers and legal advisers across the globe are preparing for another monumental year of corporate mergers and acquisitions in 2026, riding the powerful momentum generated by a record-shattering 2025. The resurgence of megadeals, characterised by soaring CEO confidence and a shifting regulatory landscape, signals a robust phase for global finance, with significant implications for Indian corporations and investors eyeing strategic moves.
A Year of Unprecedented Megadeals
According to definitive data from LSEG that traces back to 1980, the world witnessed an unprecedented 68 transactions valued at $10 billion or more announced in 2025. This extraordinary activity propelled the average annual deal size to a new historic peak of nearly $227 million. The scale of these transactions underscores a profound shift in market sentiment.
"Large deals are driving the market. And when you see big deals, it’s a sign of CEO and boardroom confidence," stated Ivan Farman, the global co-head of M&A at Bank of America. Farman and his team are forecasting that this powerful momentum will not only persist through 2026 but extend across a diverse spectrum of industries.
The dealmaking engine, which initially revved up as anxieties surrounding former President Donald Trump's tariff policies began to fade, has maintained its relentless pace. The fervour is so intense that one lawyer reported receiving client messages even on Thanksgiving—a 24-hour period traditionally considered sacrosanct for a pause, even on the notoriously busy Wall Street.
Blockbuster Deals Define the Landscape
The year 2025 was marked by several transformative agreements that reshaped entire sectors. In the media industry, Netflix struck a monumental $72 billion deal to acquire Warner Bros. Discovery's studios and its HBO Max streaming service. This move, in turn, triggered Paramount Skydance to launch a $77.9 billion hostile takeover bid for the entire company, highlighting the intense consolidation race.
In a historic move for transport, Union Pacific agreed to purchase Norfolk Southern for $72 billion in July, aiming to forge the first U.S. transcontinental railroad. The technology and consumer sectors were equally active, with videogame giant Electronic Arts announcing a $55 billion deal to go private, and Huggies owner Kimberly-Clark agreeing to buy Tylenol maker Kenvue for $40 billion.
Cautious Optimism and Emerging Themes for 2026
While the mood is bullish, it is tempered with caution born from recent history. Jonathan Davis, a corporate partner at Kirkland & Ellis, noted that companies are now moving with urgency, fearing they might "miss the boat." "For the first time in several years, there’s a growing perception that the failure to act quickly risks losing the asset," he explained. However, he described his outlook as "super bullish, but cautiously so," acknowledging past false starts.
Lawyers from the prestigious firm Wachtell, Lipton, Rosen & Katz identified key themes poised to dominate 2026. These include a rise in corporate spinoffs, increased merger and acquisition activity within the cryptocurrency sector, and a greater influx of capital from sovereign-wealth funds, particularly those based in the Middle East. Private-equity firms have also jumped back into the fray, often collaborating on large deals, such as the joint acquisition of women's health company Hologic by Blackstone and TPG.
The anticipated continued boom is further evidenced by strategic hiring investments from major banks and law firms, including Wells Fargo, Lazard, Paul Weiss, and Kirkland & Ellis. Management teams are also learning to navigate the Trump administration's more relaxed enforcement approach towards tie-ups, though the potential for regulatory curveballs remains.
A Diverging Global Picture: Europe Lags
Not all regions are sharing in the unbridled optimism. Europe, typically the second-largest destination for buyers after the U.S., emerged as a laggard in 2025. Despite a 23% rise in M&A value involving European targets—exemplified by the $18 billion tie-up between Keurig Dr Pepper and Amsterdam-based JDE Peet’s—this growth was the weakest among the world's six largest M&A regions tracked by LSEG.
"Europe is seen as divided and slow," said Birger Berendes, head of continental European M&A at Jefferies Financial Group. This perception, coupled with harsh commentary from U.S. political and business circles regarding Europe's foreign policy and regulations, is deterring American buyers unless the target possesses strategic technology or is a clear market leader. The number of U.S. buyers targeting the region fell to its lowest level since 2020.
As the financial world turns its gaze to 2026, the stage is set for another year of transformative corporate marriages and acquisitions. The record-breaking trends of 2025, driven by confidence, capital, and strategic realignment, provide a powerful tailwind. For Indian businesses and investors with global aspirations, understanding these dynamics will be crucial to capitalising on the opportunities within this new wave of megadeals.
