Global M&A volume jumped 22% year-on-year to USD 1.16tn in the quarter to date (23 March), the second highest start ever after 2021. A record 17 megadeals – those valued at USD 10bn or more – worth a combined USD 413bn underpinned the surge.

The momentum in large-cap dealmaking, which began in mid-2025, continued into 2026, led by transactions in artificial intelligence, utilities, and financial services. By contrast, the middle market’s long‑awaited rebound failed to materialize, held back by AI’s perceived threat to software, elevated financing costs, and heightened geopolitical volatility following the war with Iran.

“Those larger deals tend to have a very clear strategic rationale, whether that’s consolidation, access to technology, or positioning for long-term growth,” said Kate Cooper, partner at Freshfields.