Global — Global mergers and acquisitions activity weakened significantly in the third quarter as rising borrowing costs made large transactions harder to finance, although dealmaking remained active in parts of the technology sector and across Asian markets.
Worldwide M&A activity reached $993 billion in the three months through September, down 41% from the previous quarter, according to LSEG data cited by Reuters. It marked the first quarter since the second quarter of 2025 in which global deal volume dropped below $1 trillion.
Only 10 transactions valued at more than $10 billion were announced during the quarter, representing the lowest number of quarterly megadeals since the fourth quarter of 2024.
Among the biggest deals were Banca Monte dei Paschi’s $32 billion bid for Banco BPM and Gold Fields’ $25.7 billion bid for Northern Star Resources.
Financing costs have become a more significant consideration for dealmakers. The 10-year U.S. Treasury yield climbed to 5.34% on Thursday, its highest level since 2002, after the benchmark posted its largest quarterly increase this century.
Despite the third-quarter decline, M&A activity remains strong on a year-to-date basis. Global deal volume has reached $3.9 trillion so far in 2026, an increase of 28% from the same period in 2025 and the highest level for the period since 2001.
The number of transactions, however, has fallen 8%, reaching levels not recorded since 2020.
Technology continues to account for a significant share of dealmaking. Strategic investments in technology companies have made up about 24% of global M&A activity this year as businesses pursue artificial intelligence capabilities, technology and access to markets.
The Asia-Pacific region bucked the broader quarterly trend. M&A activity there reached $242 billion, rising 8% from the second quarter and 36% from the same period a year earlier.
Cross-border dealmaking has also remained robust, with such transactions increasing 32% year-to-date from the corresponding period in 2025.
Bankers pointed to continued interest among U.S. companies in European acquisitions, partly reflecting the strength of the dollar. European investors, meanwhile, have been evaluating opportunities in the United States amid expectations of stronger economic growth.
Equity markets have provided another source of support. Global initial public offerings excluding SPACs had raised $215 billion by the end of the third quarter, the highest amount since 2021 despite a lower number of deals than during the same period last year.
Companies raised $284 billion through stock sales in the third quarter. That figure was 26% lower than the second-quarter total but 39% above the amount raised during the third quarter of 2025.
Some technology and AI-related transactions, however, have faced increased investor caution. Higher interest rates and challenges in the data-center sector have contributed to delays involving some IPOs.
The third-quarter slowdown has not stopped global M&A activity. Instead, the figures point to a market in which financing has become more expensive while companies continue to pursue acquisitions focused on scale, technology and market access.
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