Mergers – Cross-Border Dealmaking Expected to Stay Strong Through Second Half of 2026
Mergers – Cross-border mergers and acquisitions are expected to maintain solid momentum during the second half of 2026 as businesses increasingly focus on artificial intelligence, energy infrastructure and supply-chain resilience. A new report by JPMorgan indicates that companies are pursuing international transactions not only to expand operations but also to strengthen long-term competitiveness in sectors considered strategically important.
Cross-border deals record strong first-half performance
According to the report, cross-border M&A transactions reached approximately USD 820 billion during the first six months of 2026, representing a 63 percent increase compared with the same period a year earlier. These international transactions accounted for 26 percent of total global merger and acquisition activity during the period.
Large-scale deals played a significant role in this growth. Out of 48 mega transactions completed worldwide in the first half of the year, 17 involved companies from different countries. These major deals contributed around 37 percent of the overall value of cross-border M&A activity, highlighting continued investor confidence in international expansion despite an uncertain economic environment.
Technology and AI remain central to investment strategies
JPMorgan identified technology as one of the biggest forces shaping global dealmaking, with artificial intelligence leading investment priorities. Financial services, energy and power-related businesses also remained among the sectors attracting the highest level of strategic interest.
The report noted that corporations and institutional investors are committing significant capital to integrate AI into core business operations. Beyond software and AI platforms, the rapid adoption of artificial intelligence is creating investment opportunities across supporting industries, including data centres, electricity generation, cooling systems, networking infrastructure and enterprise software.
Four of the five largest global transactions completed during the first half of 2026 were directly connected to AI or the infrastructure required to support its expansion. Funding rounds and stake sales involving advanced AI companies generated around USD 370 billion during the six-month period, reflecting the sector’s growing influence on global capital markets.
US and Europe continue to dominate international transactions
The United States and the United Kingdom remained among the busiest international deal corridors, with six of the ten largest cross-border transactions taking place across the Atlantic.
European companies are increasingly looking toward the US market to access advanced technologies, innovation ecosystems and new growth opportunities. Meanwhile, acquisitions involving European businesses have largely focused on industry consolidation and strengthening regional market leaders capable of competing on a global scale.
Geopolitical changes reshape corporate priorities
The report also highlighted that geopolitical tensions and increasingly protectionist trade policies are influencing corporate decision-making. These developments have widened valuation differences across markets while encouraging businesses to prioritise operational resilience over traditional expansion strategies.
Instead of focusing solely on cost efficiencies, many companies are placing greater emphasis on securing critical technologies, strengthening energy security and developing more reliable supply chains capable of withstanding future disruptions.
Although interest in acquisitions remains high, companies continue to face challenges from volatile trade conditions, fluctuating energy prices, changing interest rates and broader economic uncertainty. JPMorgan noted that these factors continue to affect conventional merger activity, even as strategic sectors remain active.
AI investment becomes a major force in global capital formation
Another notable trend identified in the report is the rapid rise of AI-related capital formation. Six major funding rounds completed during the first half of 2026 accounted for roughly 40 percent of global minority investment volume and represented about 8 percent of overall M&A activity during the period.
JPMorgan believes that international dealmaking is likely to remain supported throughout the remainder of 2026 as governments and corporations increasingly align investment decisions with technology leadership, energy resilience and secure supply-chain partnerships. The report suggests that these priorities are becoming central to cross-border acquisition strategies in an evolving global economy.