• Ten megadeals announced in April, including of four European targets
• PE buyout activity down 47% on March and 22% year-on- year
• Carve-out and spin-off activity at five-year high

Marked by geopolitical turmoil, rapid AI-driven disruption, activism and swiftly evolving consumer expectations, this is not an easy market for boardrooms to navigate.

Against this backdrop, transformational, value‑unlocking transactions drove M&A activity in April, with 10 megadeals announced – the highest monthly total since October 2025 and double the number recorded in April 2025.

The number of megadeals – defined as deals worth USD 10bn or more – continued to heavily feature North American targets in April, but European targets emerged strongly taking the top three positions in the tally, expanding the geographical spread of large-cap dealmaking.

The top three megadeals, worth a combined USD 119bn, included Kone’s bid for TK Elevators and Altice France’s SFR disposal to a consortium of local competitors. These came as the European Commission published draft new merger guidelines encouraging the creation of regional champions.

UMG’s USD 61.4bn takeover bid from Pershing Square Capital and the rumoured colossal bid from Deutsche Telekom for T-Mobile, also underline the interest in unlocking the valuation dislocation between Europe and the US.

US outbound M&A, meanwhile, hit its second highest deal volume on record for the first four months of the year, with USD 167.4bn deals logged until the end of April 2026. This is second to 2021, when US acquirers carried out USD 173.9bn of outbound deals in the year to 30 April.  

There is conviction over stronger buys because of the speed of change. “Bolder moves are needed to stay relevant,” said Joshua Martin, global head of transaction services at KPMG International.

Despite this, there was a slight drop of 8% in deal volumes in April compared to March, while overall deal activity of USD 468bn in April was up 50% compared to April 2025.

But, with mid-cap names heavily impacted by geopolitics, a more selective financing market and with fewer levers to pull to address valuation dislocation, activity has remained muted.

Private equity buyout activity has been particularly slow in April, down 47% on March 2026, and 22% down year-on-year. The largest announced buyout was the proposed offer for Intertek Group by EQT for USD 13.2bn, which was rejected by the testing and certification company’s board.

Within sectors, microtrends are driving activity, from the desire for IP assets boosting media sector volumes, to the need for pharma giants to renew pipelines, while the “Saaspocalypse” has taken some steam out of the tech deal-making engine.

Naturally, the Iran war has created a new dynamic within dealmaking. Oil and gas activity in April (USD 30.4bn) was up 4.6x versus last month, driven by Shell’s USD 16.6bn acquisition of ARC Resources. This play underlines how oil majors are refocusing on geography following the closure of the Strait of Hormuz. Our reporting noted we can expect oil majors to use their highly valued paper to make plays in low-risk jurisdictions, such as the USA, Canada and Norway, that can reach their end markets, as well as frontier oil and gas basins.

Carve-outs 

Carve-outs are a classic part of the downturn playbook. With corporates adapting to the higher rate environment, efforts to pivot away from non-core assets to keep activists at bay and free up capital could bear fruit in months to come – provided buyers remain keen.

Globally, 2026 has seen the strongest start to announced carve-outs and spin-off activity in five years. As of the end of April, there were USD 234.3bn of announced transactions across 1025 deals – up 18% YTD compared to 2025.

“Boards are starting to proactively look at the risks associated with the tail of their portfolio, from ESG to cyber,” Martin said. “They are weighing up the economies of scale from portfolio breadth versus the risk factor in the tail.”

And it is not only corporates. “We are familiar with the narrative of PE suitors sitting on their portfolios for longer, but if they can sell off a piece of an asset, then that acts as a release valve,” Martin said.

The market has witnessed some “mega carve-outs” this year including the ongoing USD 42.7bn divestment of Unilever’s food business to McCormick & Co, which was announced in March, followed by Altice’s French telecom business unit carve out for USD 23.9bn in April. In total, there have been 49 carve-outs above USD 1bn announced so far this year.

Moves like this could buoy hopes that some of the 424 potential carve-outs in Mergermarket’s auctions pipeline as of the end of April could find a path to exit.

Aurelius Investment Advisory’s partner Tristan Nagler pointed out that questions around trading performance and valuation gaps between high seller expectations and low buyer appetite, are clouding execution prospects for some carve-outs.

Heinz CEO’s decision to pause the separation of its business in February, largely down to operational issues, underlines the complexity of these transactions. The length of time between announcement and execution can also test conviction.

People underestimate the complexity that plays in to a carve-out, Martin noted. Common themes that can create challenges to deal execution are people, IT, and regulatory approvals, he noted. “Even a straightforward permit for a factory could become a problem if it does not transfer automatically in a change of control.”

However, Kone’s move for TK Elevators in April may provide sponsors a proof point of the scope for returns from operational efficiencies from a carve out. Financial sponsors Advent and Cinven secured the EUR 29bn exit after acquiring the asset in 2020 for EUR 17bn.

Top Viewed and Related April Content

Elon Musk could secure SpaceX/Tesla holding with pre-IPO merger by Samuel Kerr

Jacobs Capital distributes IMs for Mammut Sports sale by Eva Ng, Tongjian Dong, Philipp Fischer and Feier Wang

Everllence debt quantum edges upward as sale of Volkswagen-owned turbine manufacturer advances by Patrick Costello, Francesca Ricciardi, Edin Imsirovic and Philipp Fischer

TICC investors blaze a trail with European fire safety consolidation by Min Ho, Aurelia Seidlhofer and Akshaya Hari

FNZ Group shortlists second round bidders for German banking division by Philipp Fischer and Dominic Pasteiner

Actimize sale enters second round with shortlist of PE bidders by Charlie Taylor-Kroll, Cristiano Bona, Dominic Pasteiner and Bhavna Kaul

KKR explores sale of Circor’s aerospace business by Richard Tekneci and Bhavna Kaul

Blackstone-backed TechnoPro to collect initial bids for construction staffing subsidiary by end-April

Benesse collects first-round bids for Tetsuryokukai operator Tokyo Kyoikuken

PAG sets first round bids for Acme Formulation sale by mid-April

SaaSpocalypse fall-out forces Aussie software investors to rethink M&A strategies by Louise Weihart, Maggie Lu Yueyang and Mansi Gandhi