Global deal activity began 2026 on a subdued note, with the total number of deals (mergers & acquisitions (M&A), private equity (PE) and venture financing) announced globally decreased by around 7% year-on-year (y-o-y) during January-February 2026.
While some areas of the market showed resilience – most notably venture financing and a strong rebound in China, the broader environment remained weighed down by softer M&A and a pullback in PE activity, according to GlobalData, publishers of RBI.
An analysis of GlobalData’s Financial Deals Database reveals that the total number of M&A deals announced globally fell by 12% y-o-y during January-February 2026 while PE deals volume contracted by 32%. Meanwhile, the number of venture financing deals rose by 5% during this period.
Regional performance remained mixed. North America remained relatively steady with the deal volume standing mostly at the same level. Asia-Pacific registered a modest decline of 6% during January-February 2026 while Europe, Middle East and Africa, and South and Central America experienced double-digit YoY declines of 14%, 12% and 37%, respectively.
Aurojyoti Bose, Lead Analyst at GlobalData, said: “While the decline signals that cautious sentiment continues to shape boardroom and investor decision-making, the varying performance across major markets points to a fragmented and regionally driven global dealmaking environment.”
Trends across key markets further illustrate the divergence in dealmaking momentum. The US and the UK were stable with almost flat YoY activity, whereas China stood out with a 47% y-o-y increase, signalling a notable resurgence in activity that helped offset weakness elsewhere in Asia-Pacific region. India, Canada, Japan, Germany, Australia and France saw respective deal volume fall by 5%, 10%, 51%, 19%, 17% and 13%.
Bose concluded: “Deal activity is likely to remain selective in the near-term due to the prevailing volatile geopolitical environment, as investors prioritise capital efficiency, regulatory clarity, and sector-specific growth opportunities. A sustained rebound will depend on improving macroeconomic visibility, easing financing conditions, and renewed confidence in cross-border investment flows.”
“Weak M&A and private equity drag global deal activity down by 7% y-o-y in early 2026: GlobalData” was originally created and published by Retail Banker International, a GlobalData owned brand.
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