(P1) A record 22 corporate deals valued at over $10 billion each were announced globally in the first quarter of 2026, signaling robust confidence in long-term strategic growth despite market volatility and geopolitical tensions. The surge in megadeals pushed total M&A value up by 29 percent year-over-year, even as the overall number of transactions fell by 17 percent.
(P2) "Uncertainty due to oil, growth and rates isn’t going away. But major deals are still getting done,” said Ben Goodchild, a partner in the M&A group at law firm Paul Weiss. “The M&A market is focused on the long-term fundamentals: right deal, right price and right strategic rationale.”
(P3) The quarter's activity was highlighted by Unilever's more than $65 billion deal to combine its food business with spice maker McCormick and Sysco's agreement to acquire Jetro Restaurant Depot for over $29 billion. In the tech sector, Amazon.com's $50 billion investment in OpenAI as part of a $110 billion fundraise underscored the continued drive for AI dominance. The healthcare sector also saw significant activity, with Eli Lilly acquiring Centessa Pharmaceuticals for up to $7.8 billion and Biogen announcing a $5.6 billion deal for Apellis Pharmaceuticals.
(P4) The wave of large-scale dealmaking suggests that many companies see a strategic window to pursue transformative acquisitions, partly driven by a perceived shift toward a more lenient antitrust environment in the U.S. following the departure of the Justice Department’s top antitrust official, Gail Slater. This trend is expected to continue, with several other major transactions, including a potential deal between Estée Lauder and Puig Brands, currently in discussion.
Despite the record-breaking quarter for megadeals, the broader market has faced headwinds. U.S. stocks are on pace for their worst quarter in four years, and rising oil prices have fueled concerns about sustained inflation and higher interest rates, making deal financing more expensive. This uncertainty has led to a slowdown in smaller deals, particularly those valued between $1 billion and $5 billion, as buyers exhibit more caution.
Private equity firms, holding record numbers of portfolio companies, have been hesitant to sell at depressed valuations, further contributing to the slowdown in smaller transactions. However, dealmakers remain optimistic that activity could rebound later in the year if market conditions stabilize.
"If we get a bit of stability in the markets and the economy, the floodgates could open to a phenomenal M&A year where companies are doing $100 million deals and $2 billion deals, all the while the $50- and $100-billion deals continue,“ said Frank Aquila, Sullivan & Cromwell’s senior M&A partner.
This article is for informational purposes only and does not constitute investment advice.
