Global mergers and acquisitions (M&A) totaled $993 billion in the third quarter, down 41% from the second quarter of 2026 and the first quarterly total below $1 trillion since the second quarter of 2025, according to LSEG data. The period included Banca Monte dei Paschi’s $32 billion bid for Banco BPM and Gold Fields’ $25.7 billion bid for Northern Star Resources, among 10 deals exceeding $10 billion, the fewest quarterly megadeals since the fourth quarter of 2024. Higher energy costs, inflation and rising interest-rate expectations have complicated valuations, although Morgan Stanley’s global head of M&A, John Collins, said the data did not yet justify calling a slowdown. Worldwide M&A remains up 28% this year at $3.9 trillion, its highest level for the period since 2001, even as deal volume fell 8% to levels not seen since 2020. Technology investment, strategic stakes in technology companies, IPOs and cross-border transactions have supported activity. Asia Pacific M&A rose 8% from the second quarter and 36% from a year earlier to $242 billion, while private equity-backed dealmaking reached its strongest year-to-date level by value since records began in 1980. Bankers expect strategic demand, AI investment and cross-border activity to support another robust year in 2027, though higher rates and disruption in the data-center sector have delayed some IPOs.