Global mergers and acquisitions (M&A) totaled $993 billion in the third quarter of 2026, down 41% from the second quarter and marking the first quarter below $1 trillion since Q2 2025, according to LSEG data. Only 10 deals worth more than $10 billion were announced, the fewest quarterly megadeals since Q4 2024. Higher energy costs and rising bond yields added pressure to valuations, although bankers said strategic demand for scale, markets and technology remained strong. Worldwide M&A is up 28% year to date at $3.9 trillion, the highest level for the period since 2001, even as deal volumes fell 8% to levels last seen in 2020. Asia-Pacific activity rose 8% from the second quarter and 36% from a year earlier to $242 billion. Strategic stake purchases in technology companies represented about 24% of global M&A, while cross-border dealmaking increased 32% year on year. Initial public offerings (IPOs) and new listings also supported acquisition activity by giving companies more equity currency, although higher rates and data-center setbacks have delayed some technology offerings. Bankers cited artificial intelligence as a continuing structural driver and said 2027 could remain robust despite uncertainty.