Global M&A Activity Slumps 41% in Q3 as Borrowing Costs Rise

Key Facts

1Global M&A activity totaled $993 billion in the third quarter, a 41% decrease compared to the second quarter of 2026.

2This marks the first quarter for deal values to fall below the $1 trillion threshold since the second quarter of 2025.

Global M&A activity totaled $993 billion in the third quarter of 2026, a 41% decrease compared to the second quarter. Reuters reported that this marks the first quarter for deal values to fall below the $1 trillion threshold since the second quarter of 2025.

The slowdown in deal-making is attributed to rising borrowing costs, linked to a surge in US Treasury yields which has increased financing hurdles for large-scale transactions. This decline reflects tightening financial conditions and reduced corporate risk appetite, impacting investment banking revenues.