Global dealmaking fell below $1tn in the third quarter for the first time since Donald Trump unleashed his trade war last year, as high interest rates threaten to derail a blockbuster year for mergers and acquisitions. Activity dropped to $986bn in the three months to September, marking a sharp fall from the record level of close to $1.7tn in the previous quarter, according to LSEG. The year-on-year decline was more measured, with activity down 13 per cent.
Dealmaking had surged in the first half of the year as companies shook off the uncertainty of the US president’s tariffs and the war in the Middle East. The Trump administration has also spurred activity by lowering antitrust guardrails. But while M&A had been on track for a record-breaking year before the third-quarter slowdown, the total for 2026 so far of $3.9tn now lags that of 2021, when almost $4.2tn worth of deals were recorded in the first nine months.
Among the highest-profile deals of the third quarter were Aon’s $17bn agreement to buy KKR-backed insurance brokerage firm USI, and Uber Technologies’ €13bn move on German food delivery app Delivery Hero. Former Disney chief executive Bob Iger and investor Josh Kushner, who is the brother of Trump’s son-in-law, also teamed up to strike a $12.5bn deal to buy NBA basketball team the Los Angeles Lakers.
But the economic and political environment has become more challenging for dealmakers. Higher interest rates intended to tame inflation in the wake of the Iran war have made it more difficult to finance large deals, while the rapid rollout of AI is destabilising business models and markets. Several large deals unravelled in the three months to September, including Astra Zeneca’s $400bn tie-up with Bristol Myers Squibb and Honeywell spin-off Solstice Advanced Materials’ $14.5bn takeover of Element Solutions.
Source: Financial Times Companies · Summarized by HeadlinesBriefing