Deal Drivers: APAC provides an in-depth review of M&A activity in the first half of 2026 and an outlook for the rest of the year.

Oil import dependence haunts APAC

APAC entered 2026 on a firm footing, but the Iran war has tested the region’s resilience more than most. As the world’s most energy-import-dependent region, Asia has been hit particularly hard by Hormuz disruption. The IMF expects regional inflation to rise to 2.6% in 2026, narrowing central banks’ policy options and tempering growth. Asian GDP is projected to expand by 4.4%, down from 5% in 2025.

Buyout firms pick up M&A slack

APAC M&A generated 5,171 deals worth US$490bn in H1 2026, an 11% decline in volume and a sizable 23.9% drop in aggregate value year-on-year, making it the only major region to see both metrics contract simultaneously. Advisors point to a combination of Iran-driven energy disruption hitting Asia’s import-dependent economies hardest and a sharp pullback in mainland China and Hong Kong deal values.

Energy demands

H1’s largest APAC transaction was Vedanta’s US$20.7bn landmark five-way demerger, which split India’s mining-to-metals conglomerate into independently listed aluminum, oil & gas, iron & steel, and power companies. The most complex simultaneous multi-entity listing in Indian corporate history, it drew an immediate market verdict: Vedanta Aluminium Metal listed at a 331% premium to its exchange base price.

Published in association with Datasite. The report is also available on datasite.com.