Deal Drivers: EMEA provides an in-depth review of M&A activity in the first quarter of 2026 and an outlook for the year ahead.

Giants feast while mid-market fasts

Q1 2026’s two-speed M&A market has become a familiar sight. Transaction volume across EMEA fell 16% year-on-year to 4,310 deal announcements, retreating to 2023 levels, yet aggregate value rose by 28% to €360.2bn, a high-water mark over the past three years.

FS and TMT sectors dominate

Financial services (FS) M&A surged 82.1% to €82.1bn, delivering pan-European banking consolidation long promised by policymakers. Technology, media and telecom (TMT) rose by 29.4% to €73.2bn, driven primarily by Italy’s strategic telecoms re-nationalization. The duo captured €155.3bn worth of M&A, over 40% of all invested value in Q1.

Champion deal

The largest deal in EMEA in Q1 was McCormick’s €37.1bn acquisition of Unilever’s food business, including Knorr and Hellmann’s, representing a definitive retreat by the Anglo-Dutch conglomerate from consumer staples. Unilever is instead pivoting toward premium beauty and health.

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